LIBRARY 

OF  THE 

University  of  California. 


GIFT    OF 


c, 


Class  DOCUMENTS 

OEPT, 


REPORT 


COMMISSIOJN    ON    TAXATIOiN, 


Al'POINTEB  UNDER  THE  PROVISIONS  OF  CHAPTER  121) 
OF  THE  RESOLVES  OF  1907, 


JO   INVESTIGATE  THE  SUBJECT  OF  TAXATION    AM) 

TO   CODIFY.    REVISE  AND  AMEND  THE 

LAWS  RELATING  THERETO. 


January,     1908. 


BOSTON: 

WRIGHT  &  POTTER  PRINTING  CO.,  STATE  PRINTERS, 

18  Post  Office  Square. 

1908. 


REPORT 

or  THE 

Commission  on  Taxation, 


Appointed  under  the  Provisions  of  Chapter  129 
OF  THE  Resolves  of  1907, 


TO  INVESTIGATE  THE   SUBJECT  OF  TAXATION  AND 

TO  CODIFY,  REVISE   AND  AMEND  THE 

LAWS  RELATING  THERETO. 


January,    1908 


V 


pil'--^-^^ 


OF  THE 


\ 


UNIVERSITY    \ 

OF  I 


BOSTON : 

WRIGHT  «&  POTTER  PRINTING  CO.,  STATE  PRINTERS, 

18  Post  Office  Square. 

1908. 


.^^^1 


CONTENTS 


Part  I.:—  page 

Letter  of  Transmission, 6 

Commission  on  Taxation, 6 

Resolve  providing  for  tlie  Appointment  of  the  Commission,       .  7 

Report  of  llie  Commission :  — 

I.     Introductory  Statement, 9 

II.    The  Distribution  of  the  Corporate  Franchise  Taxes  of 

Railroad,  Telephone  and  Telegraph  Companies,  .  12 

III.    Distribution  of  the  Franchise  Taxes  paid  by  Domestic 

Business  Corporations, 13 

IV.     Returns  by  Foreign  Corporations, 21 

V.    Taxation  of  Intangible  Property 22 

VI.    Supervision  of  the  Assessment  of  Property, for  Taxation,  73 

VII.    The  Compensation  of  Assessors, 74 

VIII.     Exemption  of  County  and  Municipal  Bonds  from  Tax- 
ation,       75 

IX.    Municipal  Taxation  and  Finance, 76 

X.    Tax  on  Transfers  of  Stock, 78 

XI.    Taxation  of  the  Property  of  Educational  Institutions,    .  79 
XII.    Codification  and  Revision  of  the  Laws  relating  to  Tax- 
ation,       79 

Appendices :  — 

A.  An  Act  relating  to  Certain  Corporate  Franchise  Taxes,  83 

B.  An  Act  relative  to  the  Distribution  of  the  Franchise 

Tax  of  Business  Corporations, 83 

C.  An  Act  relative  to  Certificates  and  Returns  of  Foreign 

Corporations, 84 

D.  An  Act  establishing  a  Uniform  Tax  on  Certain  Classes 

of  Personal  Property, 85 

E.  An  Act  to  provide  for  the  More  Effective  Administra- 

tion of  Laws  relating  to  Taxation 93 

F.  An  Act  relative  to  the  Powers  of  the  Tax  Commissioner,  95 

G.  An  Act  relative  to  the  Compensation  of  Assessors,  .  95 
H.     An   Act  to  exempt   from   Taxation   Future   Issues  of 

Municipal  and  County  Bonds 96 

I.  Table  showing  the  Distribution  of  Railroad,  Telephone 
and  Telegraph  Taxes ;  also,  the  Apportionment  of  the 
State  Tax  for  1907  to  Each  City  and  Town,  ...  96 

J.    Table  showing  the  Distribution  of  the  Entire  Corporate 

Franchise  Tax  of  1907 103 

K.    Table  showing  the  Amount  of  Corporate  Franchise  Tax 
paid  by  Business  Corporations  in  Certain  Cities  and 
Towns,  together  with  the  Amount  of  Such  Tax  re- 
turned to  the  Same  Cities  and  Towns,  .         .         .  107 
L.    Statistics  of  Municipal  Debts  and  Taxes,      .         .        .  110 

Part  II. :  — 

Codification  of  Laws  relating  to  Taxation,         ....  113 


185375 


€cimm0ntt)eaftl)  of  illa00acl)tt0ett0. 


Boston,  Jan.  8,  1908. 
To  the  Great  and  General  Court. 

In  accordance  with  the  provisions  of  chapter  129  of  the 
Resolves  of  1907,  we  have  the  honor  to  transmit  the  fol- 
lowing report  of  the  Commission  on  Taxation. 


COMMISSION  ON  TAXATION. 


SENATE  MEMBERS. 
Hon.  Guy  W.  Cox  of  Boston,  Chairman. 
Hon.  William  J.  Bullock  of  New  Bedford. 


HOUSE  MEMBERS. 

Rep.  Charles  V.  Blanchard  of  Somerville. 
Rep.  Samuel  H.  Mildram  of  Boston. 
Rep.  Clarence  J.  Fogg  of  Newburyport. 
Rep.  Richard  S.  Teeling  of  Boston. 


MEMBERS  APPOINTED  BY  THE  GOVERNOR. 

Charles  J.  Bullock  of  Cambridge. 

Bernard  Early  of  Newton. 

H.  HuESTis  Newton  of  Everett. 


Henry  S.  Ames,  Secretary. 


RESOLVE  TO  PROVIDE  FOR  A  REVISION  OF  THE 
LAWS  RELATIVE  TO  TAXATION. 


Resolved^  That  a  commission,  to  be  called  the  commis- 
sion on  taxation,^  shall  investigate  the  whole  subject  of 
taxation  in  this  Commonwealth,  including  state,  county 
and  municipal  taxes,  and  shall  codify,  revise  and  amend 
the  laws  relating  thereto,  and  shall  report  in  print  to  the 
general  court  on  or  before  the  first  day  of  December,  in 
the  year  nineteen  hundred  and  seven,  with  such  recom- 
mendations for  legislation  as  it  may  deem  expedient.  The 
commission  shall  have  a  room  in  the  state  house  assigned 
for  its  use;  is  authorized  to  employ  such  assistance,  cleri- 
cal or  otherwise,  as  it  may  require ;  and  shall  receive  such 
sums  for  its  compensation  and  such  amounts  for  its  ex- 
penses, travelling  and  otherwise,  necessarily  incurred,  as 
shall  be  allowed  by  the  governor  and  council.  It  shall 
give  such  public  hearings  as  it  deems  necessary.  The  com- 
mission shall  be  constituted  as  follows:  two  members  of 
the  present  senate  to  be  appointed  by  the  president  of  the 
senate;  four  members  of  the  present  house  of  representa- 
tives to  be  appointed  by  the  speaker  of  the  house ;  and  three 
persons,  experts  on  the  subject  of  taxation,  who  shall  be 
appointed  by  the  governor.  The  report  of  said  commis- 
sion shall  be  printed  by  the  Commonwealth,  and  a  copy 
thereof  shall  be  mailed  in  the  month  of  December,  nine- 
teen hundred  and  seven,  to  each  person  elected  to  the  gen- 
eral court  for  the  year  nineteen  hundred  and  eight.  [Ap- 
provecl  June  28,  1907. 


REPORT  OF  THE  COMMISSION. 


I.     Intkoductory  Statement. 

The  resolve  providing  for  the  appointment  of  the  com- 
mission gave  it  broader  powers  and  scope  than  were  ever 
given  to  other  committees  or  commissions  created  for  simi- 
lar work,  and  at  the  same  time  required  the  work  to  be 
completed  in  a  shorter  time.  The  committee  of  last  year 
stated  that  the  time  at  its  disposal  was  too  short  for  any 
committee  of  any  Legislature  to  study  comprehensively 
the  problems  of  taxation,  yet  its  time  was  almost  double 
that  given  to  this  commission. 

Under  the  circumstances,  it  was  necessary  to  adopt  a 
plan  of  procedure  calculated  to  be  most  effective  in  re- 
sults within  the  given  time;  and  after  a  general  hearing, 
it  was  determined  to  confine  the  work  chiefly  to  a  few 
important  questions  of  policy  affecting  methods  of 
taxation,  and  to  leave  details  both  of  system  and  admin- 
istration to  the  usual  legislative  action.  We  believe  this 
method  of  procedure  should  be  followed  in  any  attempt 
to  improve  permanently  the  general  system  of  taxation  in 
Massachusetts.  The  problem  is  not  primarily  one  of  rev- 
enue, for  under  almost  any  system  of  taxation  sufficient 
revenue  can  be  raised  to  carry  on  the  functions  of  govern- 
ment in  our  Commonwealth;  it  is  not  one  of  rate  alone, 
for,  if  the  system  be  good,  it  is  simply  a  matter  of  balance 
of  revenue  and  expenditure;  it  is  not  one  of  economic 
theories  alone,  for  we  must  deal  with  an  actual  workable 
system,  which  is  the  product  of  history  and  environment, 
—  factors  which  cannot  be  ignored. 

The  taxation  system  of  Massachusetts  proceeds  from 
two  constitutional  sources :  one  being  the  authority  to  im- 
pose  and   levy   proportional   and   reasonable  assessments, 


10 

rates  and  taxes  upon  all  the  inhabitants  of,  and  persons 
resident,  and  estates  lying,  within  our  Commonwealth; 
and  the  other  being  the  authority  to  impose  and  levy  rea- 
sonable duties  and  excises  upon  any  produce,  goods,  wares, 
merchandise  and  commodities  whatsoever  brought  into, 
produced,  manufactured  or  being  within  the  Common- 
wealth. (Constitution  of  Massachusetts,  Part  II.,  chap- 
ter I.,  section  1,  article  4.)  From  the  latter  source  arise 
the  inheritance  tax  and  the  corporation  taxes.  Inasmuch 
as  our  direct  inheritance  tax  law  was  enacted  only  last 
June,  we  have  passed  over  the  matter  of  inheritance  taxes, 
in  the  belief  that  experience  rather  than  investigation  is 
now  important  in  this  direction. 

We  have  investigated  the  general  corporation  tax  as 
thoroughly  as  time  has  jjermitted,  and  have  concluded  to 
report  only  on  the  distribution  thereof.  This  particular 
tax,  however,  is  a  matter  that  may  well  be  made  the 
subject  of  further  investigation,  especially  in  view  of 
the  large  increase  in  the  number  of  mercantile  cor- 
porations, which  were  comparatively  few  in  number 
when  the  law  was  passed.  In  this  connection  we  find  that 
under  our  system  of  measuring  and  taxing  the  value  of 
corporate  franchises,  certain  business  concerns,  which  paid 
in  Boston  a  tax  on  personal  property  valued  at  over 
$15,000,000  when  doing  business  as  co-partnerships,  have 
incorporated  within  the  last  ten  years,  and,  while  carrying 
on  the  same  business  and  presumably  employing  a  larger 
amount  of  personal  property  in  that  business,  now  pay  no 
local  tax  on  such  property,  and  at  the  same  time  pay  no 
equivalent  tax  to  the  Commonwealth.  This  is  due  to 
the  fact  that  corporations  having  no  machinery  pay  no 
local  tax  on  personal  property,  and  the  Tax  Commissioner, 
relying  upon  the  returns  of  such  corporations  as  a  basis, 
found  that  the  corporate  excess,  upon  which  alone  the 
franchise  tax  is  imposed,  was  very  much  less  than  the 
value  of  the  merchandise  and  other  personal  property 
which  was  receiving  municipal  protection  and  was  form- 
erly subject  to  local  taxation.      This  question,   however* 


11 

is  so  intimately  connected  with  the  general  policy  of  the 
State  in  the  fostering  of  its  business  corporations  that  we 
have  concluded  that  it  may  be  considered  more  properly 
in  connection  with  that  general  question. 

From  the  first  constitutional  source  arises  the  general 
property  tax.  The  constitutional  limitation  is  that  this 
tax  shall  be  '^  proportional  and  reasonable."  As  applied 
to-day,  we  find  that  a  large  part  of  the  tax  imposed  under 
this  authority  is  either  disproportional  to  any  equitable 
standard,  or  is  unreasonable.  The  reasons  for  this  are  in 
brief  as  follows :  — 

First,  —  The  effort  is  made  to  tax  all  intangible  prop- 
erty at  the  same  rate  as  tangible  property. 

The  commission  of  1897  recommended  the  abolition  of 
taxes  on  intangibles;  the  committee  of  1906  commented 
at  length  upon  the  unreasonableness  of  the  tax;  and  four 
members  in  two  supplemental  reports  recommended  that 
such  taxes  be  abolished.  We  believe  this  matter  is  the 
one  pressing  question  in  our  taxation  system,  and  that  be- 
fore any  progress  can  be  made  in  improving  that  system, 
the  question  of  dealing  with  intangibles  must  be  solved. 
We  therefore  report  at  length  the  results  of  our  investiga- 
tion and  study  of  this  question,  and  our  recommendations 
arising  therefrom. 

Second.  — ■  Taxpayers  in  our  various  municipalities  are 
subject  to  widely  varying  rates  of  taxation  not  necessarily 
proportional  to  the  benefits  received  by  them. 

1^0  doubt  this  is  caused  to  a  considerable  degree  by  the 
operation  of  the  first  reason,  as  is  shown  in  our  report  on 
that  matter.  However,  it  is  clear  that  in  a  large  measure 
this  inequality  results  directly  from  our  method  of  dis- 
tributing our  corporation  taxes.  Therefore,  we  report  in 
detail  our  recommendation  as  to  the  future  distribution 
of  such  taxes. 

Any  system  of  taxation  must  depend  for  success  upon 
the  zeal  and  faithfulness  of  the  agents  who  administer  the 
system.  On  the  whole,  it  can  be  said  of  the  tax  officials 
of  our  Commonwealth  that  their  work  shows  "  zealous  and 


12 

faithful  performance  of  duty."  We  suggest,  however,  cer- 
tain changes  in  the  machinery  of  administration  which  we 
believe  will  result  in  increased  efficiency. 

From  the  great  number  of  questions  presented  to  the 
commission,  a  few  miscellaneous  suggestions  have  been 
made,  involving  no  matter  about  which  difference  of  opin- 
ion may  be  expected. 

The  work  of  revision  and  codification  required  much 
care  and  time.  The  language  of  our  authority,  "  to 
codify,  revise  and  amend,"  we  have  not  construed  to 
confer  any  law-making  power;  and  any  verbal  or  other 
change  made  necessary  by  codification,  or  otherwise,  is 
simply  to  express  clearly  the  intent  of  the  law. 

We  desire  to  express  our  deep  appreciation  of  the  uni- 
form courtesy  extended  to  us  by  the  entire  executive  de- 
partment of  the  Commonwealth.  Naturally,  the  Tax 
Commissioner  has  been  consulted  more  frequently  than 
other  department  officials;  but  all  have  been  willing  to 
assist  us,  and  have  done  so.  To  the  Governor  and  Coun- 
cil we  especially  express  our  appreciation  of  their  atten- 
tion and  interest  in  our  work.  Our  secretary,  Henry  S. 
Ames,  brought  to  his  work  large  knowledge  of  the  laws 
relating  to  taxation,  and  much  experience  in  framing  such 
laws  and  in  the  investigation  of  taxation  problems;  and 
we  desire  to  express  our  appreciation  of  his  painstaking 
and  careful  work  on  the  codification,  as  well  as  on  all 
matters  which  we  have  considered. 

II.     Distribution     of     the     Corpoeate     Franchise 

Taxes  of  Railroad,  Telephone  and  Telegraph 

Companies. 

For  over  ten  years  the  distribution  of  the  taxes  levied 

on  the  franchises  of  domestic  corporations  has  been  the 

subject   of   discussion.      The    Tax    Commission   of    1897 

pointed  out  that  a  very  large  proportion  of  these  taxes 

was   distributed  to   a  small   number  of  towns  in  which 

large  amounts  of  personal  property  had  accumulated,  and 

recommended  that  the  Commonwealth  should  retain  the 

entire  proceeds  of  the  tax  on  corporate   franchises,   and 


13 

apply  the  same  to  the  payment  of  county  expenses.  At 
intervals  since  that  date  various  proposals  have  been  made 
to  the  Legislature  relative  to  this  subject,  and  it  has  come 
to  be  generally  recognized  that  the  present  distribution 
of  the  corporate  franchise  tax  is  both  illogical  and  unfair. 

The  Joint  Special  Committee  on  Taxation,  appointed 
in  accordance  with  an  order  of  the  General  Court  of  1906, 
recommended  a  year  ago  that  the  Commonwealth  should 
retain  the  entire  corporate  franchise  taxes  of  railroad, 
telephone  and  telegraph  companies.  In  support  of  this 
recommendation,  that  committee  submitted  a  strong  state- 
ment showing  the  evils  that  have  arisen  from  the  existing 
method  of  distribution;  and  the  present  commission  feels 
that  little  can  be  added  to  this  presentation  of  the  case. 

We  submit  as  an  Appendix  to  our  report  a  table  show- 
ing the  amounts  received  by  each  city  and  town  in  the 
Commonwealth  from  the  taxes  assessed  on  the  franchises 
of  railroad,  telephone  and  telegraph  companies,  as  well 
as  a  table  showing  the  amount  paid  by  each  city  and 
town  as  its  proportion  of  the  State  tax  in  the  year  1907; 
also,  a  table  showing  the  distribution  to  cities  and  towns 
of  the  entire  corporate  franchise  tax.  These  figures,  we 
believe,  offer  convincing  proof  of  the  inequality  of  the 
present  distribution  of  the  franchise  taxes  on  these  classes 
of  corporations,  and  show  that  a  majority  of  the  cities 
and  towns  would  benefit  greatly  if  the  Commonwealth  re- 
tained the  entire  proceeds  of  the  above  taxes,  and  applied 
the  same  to  a  reduction  of  the  State  tax. 

The  commission  renews,  therefore,  the  recommendation 
of  the  Joint  Special  Committee  of  1906,  that  the  corpo- 
rate franchise  taxes  of  railroad,  telephone  and  telegraph 
companies  be  retained  by  the  Commonwealth,  and  submits 
a  bill  in  accordance  with  this  recommendation. 

III.       DlSTRIBUTIOI^    OF    THE   FRANCHISE    TaXES    PAID    BY 

Domestic  Business  Corporations. 
The  opinion  is  now  quite  generally  held  that  no  part  of 
the  franchise  tax  paid  by  railroad,   telephone   and  tele- 
graph companies  should  be  distributed  to  the  cities  and 


14 

towns  where  stockholders  happen  to  reside;  and  this  com- 
mission recommends,  as  other  commissions  and  committees 
have  before  recommended,  that  all  of  this  tax  be  retained 
bv  the  Commonwealth.  The  retention  by  the  Common- 
wealth of  this  tax  is,  in  effect,  a  distribution  among  all 
cities  and  towns  in  proportion  to  valuation.  Such  distri- 
bution is  justified,  because  such  corporations  are  of  no 
one  cit^'  or  town. 

Our  people  have  recognized,  however,  that  some  addi- 
tional tax,  not  to  be  taken  by  the  Commonwealth,  not  to 
be  shared  by  any  other  city  or  town,  should  be  given  to 
those  cities  and  towns  which  bear  additional  burdens  by 
reason  of  the  operation  of  street  railways  in  their  public 
ways.  This  tax  is  in  addition  to  the  local  tax  on  ''  works, 
structures,  real  estate  and  machinery,''  and  is  known  as 
the  street  railway  commutation  tax.  (St.  1906,  c.  463, 
Part  III.,  §§  133-136.) 

We  do  not  think  it  necessarv  to  resort  to  statistics  to 
convince  the  people  that  for  a  city  or  town  to  construct 
streets  and  light  them,  to  furnish  water,  sewers,  schools  and 
public  buildings,  and  to  provide  police  and  fire  protection 
for  business  and  manufacturing  corporations,  their  em- 
ployees and  the  families  of  such  employees,  are  local  bur- 
dens relatively  greater  than  those  occasioned  by  the  op- 
eration of  a  street  railway  in  the  public  ways  of  a  city  or 
town. 

The  peculiar  burdens  of  our  manufacturing  communi- 
ties are  well  known.  Operatives,  perhaps  from  a  foreign 
country,  with  many  children  to  be  educated  and  fitted  for 
citizenship,  crowded  into  tenements,  require  the  highest 
municipal  care  for  fire  and  police  protection,  for  sanitary 
conditions  and  for  education.  A  single  family,  occupying 
a  fine  estate  in  a  residential  community,  actually  requires 
little  mimicipal  care.  The  tenement  house  may  be  of 
small  value  in  comparison  with  the  value  of  such  es- 
tate, yet  the  tax  on  the  value  of  the  tenement  property  is 
all  that  the  operatives  may  be  said  to  contribute  in  taxes, 
and  this  through  the  owner  of  the  tenement   property; 


15 

while  the  value  of  the  fine  estate  usuallj  represents  but  a 
part  of  the  taxable  property  of  the  single  family. 

To  meet  such  conditions,  we  do  not  think  it  wise  to 
impose  additional  taxes  upon  manufacturing  corporations. 
The  prosperity  of  Massachusetts  depends  largely  upon  the 
success  of  these  corporations;  and  a  ^reduction  in  their 
taxes,  rather  than  an  increase,  is  desirable,  especially  in 
view  of  the  ever-increasing  competition  with  like  corpora- 
tions of  other  States,  the  advancing  standard  of  our  labor 
laws,  already  higher  than  elsewhere,  and  the  present  taxes, 
now  heavier  than  those  imposed  by  any  other  State  on 
manufacturing  corporations. 

At  the  present  time  the  franchise  tax  levied  upon  these 
corporations  is  distributed  to  the  cities  and  towns  where 
the  stockholders  happen  to  reside,  except  that  the  Com- 
monwealth retains  such  portion  as  is  represented  by  shares 
of  stock  owned  by  residents  of  other  States. 

So  long  as  the  stockholders  resided  in  the  city  or  town 
where  the  business  was  carried  on,  and  which  bore  all  the 
municipal  burdens  imposed  by  that  business,  no  injustice 
resulted  from  the  present  method  of  distribution.  The 
method,  however,  was  none  the  less  unfair,  although  for 
a  time,  by  reason  of  this  accident  of  residence,  its  opera- 
tion was  confined  to  just  limits. 

It  is  not  necessary  for  our  purpose  to  state  the  cause, 
to  trace  its  growth  or  to  speculate  upon  its  continuance; 
but  the  fact  now  confronts  us  that  a  large  number  of  the 
stockholders  of  such  corporations,  and  in  many  instances 
a  large  majority  of  such  stockholders,  do  not  reside  where 
the  business  of  the  corporation  is  carried  on,  and  where 
the  public  burdens  resulting  therefrom  are  imposed. 

The  following  tables  offer  ample  evidence  in  support  of 
this  statement,  and  at  the  same  time  indicate  the  inequi- 
table results  arising  from  this  method  of  distribution :  — 


16 


Table  A. 


CITY  OR  TOWN. 

Amount  of  Corporate 
Franchise  Tax  (Ex- 
clusive of  Kailroad, 
Telephone  and  Tel- 
egraph Companies), 
distributed  locally. 

Franchise  Taxes  paid 
by  Corporations 
(Other  than  Kail- 
road,  Telephone  and 
Telegraph). 

Tax  Kate 

per 

$1000, 

1906. 

• 

Brookline,    . 

f  146,030  50 

f862  26 

f9  00 

Lawrence,    . 

19,777  12 

172,106  92 

16  00 

Manchester, 

27,423  42 

- 

8  60 

New  Bedford, 

'      57,194  55 

104,642  46 

18  40 

Newton, 

95,261  29 

6,486  44 

16  40 

Fall  Kiver,  . 

66,870  64 

102,917  57 

18  40 

Falmouth,    . 

15,282  72 

- 

11  90 

Lowell, 

36,263  04 

77,203  38 

19  60 

Milton, 

49,263  85 

1,976  00 

11  50 

Table  B. 

CITY  OR  TOWN. 

Corporate  Franchise 
Tax    (Exclusive   of 
Railroad,  Telephone 
and  Telegraph  Com- 
panies), distributed 
locally. 

Franchise  Taxes  paid 
by  Corporation's 
(Other  than  Kail- 
road,  Telephone  and 
Telegraph). 

Tax  Rate 

$&, 
1006. 

Wellesley,    . 
Lancaster,    . 
Nahant, 
Weston, 
Boston, 

$11,439  46 

6,678  04 

12,259  55 

16,356  40 

616,235  48 

$544  21 

994  56 
1,666,602  67 

fU  00 

11  40 

9  00 

9  00 

15  90 

It  appears  from  Table  A  that  one  city  and  four  towns, 
with  an  average  tax  rate  of  $11.79  per  $1,000,  received 
from  franchise  taxes  paid  by  business  and  manufac- 
turing corporations  doing  business  elsewhere  $324,- 
949.09  more  than  was  paid  by  such  corporations  doing 
business  in  said  city  and  towns ;  and  four  cities,  with  an 
average  tax  rate  of  $18.31  per  $1,000,  received  $286,- 
753.98  less  than  the  amount  of  franchise  taxes  paid  by 
such  corporations  doing  business  therein. 

The  following  tables  give  a  specific  comparison  between 
the  present  method  of  distribution  and  distribution  if  made 
to  the  city  or  town  where  the  business  is  carried  on,  all 
other  conditions  remaining  the  same :  — 


17 


Present  Distribution. 


CITY  OR  TOWN. 

Total  Valuation  of 
Assessed  Estate. 

Tot*«l  Tax, 
less  Polls. 

Tax  Kate 
per  $1,000. 

Lawrence,    . 
Brookline,    . 

$51,044,934  00 
93,282,300  00 

$816,704  00 
839,541  00 

$16  00 
9  00 

Under  Distributioyi  to  Cities  and  Towns  where  Business  is  carried  on. 

CITY  OE  TOWN. 

Total  Valuation  of 
Assessed  Estate, 

Total  Tax,  less  Polls 

necessary  to  produce 

Same  Revenue. 

Tax  Rate 
per  $1,000. 

Lawrence,    . 
Brookline,    . 

$51,044,934  00 
93,282,300  00 

$564,376  00 
985,519  00 

013  01 

10  57 

From  these  tables  it  will  be  seen  that  if  these  taxes  had 
been  distributed  to  the  cities  and  towns  where  the 
business  was  carried  on,  the  tax  rate  of  Lawrence  in 
1906  would  have  been  $3  per  $1,000  lower,  all  other 
things  remaining  equal,  and  the  tax  rate  in  Brookline 
$1.57  per  $1,000  higher  than  was  actually  the  case.  In 
a  similar  way,  it  may  be  shown  that  the  tax  rate  of  New 
Bedford  would  have  been  almost  $1  lower,  of  Manchester 
$2.41  higher,  of  Boston  $0.75  lower,  and  of  Weston  $2.16 
higher. 

We  have  examined  the  figures  of  large  groups  of  cities 
and  towns  which  we  submit  herewith,  and  we  find  the 
invariable  result  to  be  that  industrial  centers  lose  and 
residential  centers  gain  from  the  present  method  of 
distribution.  Of  course  figures  can  be  given  for  each 
city  and  town,  and  corresponding  computations  made,  but 
this  we  believe  to  be  unnecessary,  as  the  computations  al- 
ready cited  prove  that  the  present  method  of  distribution 
is  absolutely  unfair  in  principle.  One  way  of  stating  its 
operation  is  to  say  that  the  local  community  can  derive 
a  compensatory  tax  from  its  corporate  industries  only 
when  they  are  incorporated  elsewhere  than  in  Massachu- 
setts; for  the  foreign  corporation  pays  a  local  tax  on  ma- 


18 

terials  and  merchandise,  which  the  domestic  corporation 
does  not.  It  is  not  strange  that  representatives  of  domes- 
tic corporations  have  complained  to  us  that  local  authori- 
ties are  favoring  foreign  corporations.  Another  way  of 
stating  its  operation  is  to  say  that  by  it  the  Common- 
wealth, acting  as  an  intermediary,  authorizes  certain  mu- 
nicipalities to  collect  a  tax  on  the  industries  of  other 
municipalities,  ^o  logical  'reason  can  be  given  for  such 
a  condition. 

In  the  recent  case  of  Union  Refrigerator  Transit  Com- 
v/  pany  v.  Kentucky,  199  U.  S.  195,  the  court  said:  ^'  The 
power  of  taxation,  indispensable  to  the  very  existence  of 
the  civil  government,  is  exercised  upon  the  assumption  of 
an  equivalent  rendered  to  the  taxpayer  in  the  protection 
of  his  person  and  property,  in  adding  to  the  value  of 
such  property,  or  in  the  creation  and  maintenance  of  pub- 
lic conveniences  in  which  he  shares ;  such,  for  instance,  as 
roads,  bridges,  sidewalks,  pavements,  and  schools  for  the 
education  of  his  children.  If  the  taxing  power  be  in  no 
position  to  render  these  services,  or  otherwise  to  benefit 
the  person  or  property  taxed,  and  such  property  be  wholly 
within  the  taxing  power  of  another  State,  to  which  it  may 
be  said  to  owe  an  allegiance  and  to  which  it  looks  for  pro- 
tection, the  taxation  of  such  property  within  the  domicile 
of  the  owner  partakes  rather  of  the  nature  of  an  extor- 
tion than  a  tax,  and  has  been  repeatedly  held  by  this  court 
to  be  beyond  the  power  of  the  Legislature,  and  a  taking  of 
property  without  due  process  of  law." 

It  cannot  be  said  that  Brookline  or  Manchester  renders 
any  such  services  to  the  mills  of  Lawrence;  and  while, 
undoubtedly,  it  is  due  process  of  law  for  the  Common- 
wealth to  permit  Brookline  and  Manchester,  in  effect,  to 
tax  these  mills,  this  is  none  the  less  in  result  '^  rather  of 
the  nature  of  an  extortion  than  a  tax." 

The  Governor  has  called  attention  to  the  wrongs  inci- 
dent to  this  unreasonable  condition.  And  the  Joint  Spe- 
cial Committee  on  Taxation  of  1906,  when  discussing  its 
proposal  for  the  Commonwealth  to  retain  all  the  corpo- 
rate franchise  taxes  of  railroad,  telephone  and  telegraph 


19 

companies,  said :  "  Strict  reasoning  and  complete  equity 
demand  that  all  the  corporate  franchise  taxes  should  be 
retained  by  the  Commonwealth,  or  should  be  distributed 
on  some  basis  other  than  that  of  the  residence  of  stock- 
holders;" and,  further:  "The  result  is  (under  present 
distribution),  that  many  communities  receive  taxes  for 
which  they  give  no  return  in  the  form  of  services  ren- 
dered." 

The  tables  herewith  submitted  prove  this  statement  to 
be  absolutely  correct. 

The  committee  of  1906  attempted  to  divide  business 
corporations  into  two  classes,  one  to  be  known  as  manu- 
facturing, and  the  other  as  mercantile;  and  proposed  a 
new  tax  upon  mercantile  corporations,  to  be  distributed 
to  the  cities  and  towns  where  the  business  was  carried  on, 
or  where  the  property  of  the  corporation  was  situated. 

The  proposition  signally  failed,  because  of  the  attempt 
at  additional  taxation;  but  no  one  appeared  before  the 
Legislature  who  denied  that  the  tax,  if  imposed,  should 
be  distributed  to  the  city  or  town  which  gave  municipal 
protection  to  the  property  taxed.  Moreover,  Boston  was 
the  only  community  which  would  have  been  substantially 
benefited  by  that  measure;  and  it  is  certain,  as  appears 
from  an  examination  of  returns,  that  the  injustice  occa- 
sioned from  the  distribution  of  the  taxes  of  so-called  mer- 
cantile corporations  is  of  no  moment  in  comparison  with 
the  injustice  resulting  from  the  distribution  of  the  taxes 
of  manufacturing  corporations. 

Without  going  into  the  question  of  whether  it  is  "more 
desirable  to  have  a  higher  tax  rate  in  business  than  in 
residential  centers;  of  whether  the  public  schools  of  the 
mill  centers  shall  be  as  well  taken  care  of  as  the  public 
schools  of  the  residential  centers;  of  whether  the  mills 
might  save  in  taxes  in  one  place  an  amount  equal  to  a 
saving  from  a  cut  in  wages,  or  an  amount  equal  to  an  in- 
crease in  wages,  in  another  place;  of  what  advantage  it 
might  be  to  mill  centers  to  have  their  revenue  increased, 
—  it  is  within  our  province  to  say  that,  if  taxation  is  to 
be  reasonable  and  proportional  between  all  the  inhabitants 


20 

of  the  Commonwealth,  as  provided  in  our  Constitution, 
there  appears  to  be  no  more  certain  way  of  equalizing  the 
rates  between  many  centers  than  by  distributing  the  tax 
levied  upon  business  and  manufacturing  corporations 
among  the  cities  and  towns  where  the  business  is  car- 
ried on. 

In  this  connection  it  is  well  to  remember  that  the  pro- 
posal for  a  uniform  tax  on  intangible  property,  while  it 
will  be  helpful  to  all  communities  in  proportion  to  such 
property  therein  located,  may  not  be  so  helpful  in  the 
aggregate  to  industrial  centers,  where  comparatively  little 
of  such  property  is  held,  as  to  certain  residential  centers, 
where  such  property  is  held  in  large  amounts.  The  time, 
therefore,  is  favorable  to  take  the  necessary  steps  to  insure 
a  more  equitable  distribution  of  the  franchise  tax  among 
the  cities  and  towns. 

We  all  agree  that  some  change  should  be  made,  but  it 
has  been  impossible  to  arrive  at  a  imanimous  conclusion 
as  to  the  most  desirable  change.  Some  members  suggest 
that  the  Commonwealth  should  retain  all  the  tax,  which 
would  undoubtedly  result  in  the  elimination  of  the  direct 
State  tax;  and  others  that  the  Commonwealth  retain  all 
the  tax,  and  assume  all  county  expenses.  The  Common- 
wealth might  be  justified  in  retaining  this  tax,  as  it  grants 
the  franchise,  assumes  the  general  care  of  the  corporation 
and  collects  the  tax. 

However,  the  majority  of  the  commission,  while  recog- 
nizing that  nothing  can  be  said  in  favor  of  the  present 
system  of  distribution  except  that  it  exists,  agree  that  cer- 
tain conditions  have  arisen  which  must  be  taken  into  ac- 
count before  too  sweeping  changes  are  made;  and  there- 
fore recommend  that  the  Commonwealth  retain,  as  at  pres- 
ent, the  portion  of  the  tax  represented  by  stock  owned 
outside  the  State;  that  one-half  of  the  remainder  be  dis- 
tributed as  at  present,  and  the  other  half  be  given  to  the 
cities  and  to^^Tis  where  the  business  is  carried  on.  Such 
distribution  will  not  affect  the  amount  of  the  franchise 
tax,  but  the  corporations  may  save  something  in  local  taxa- 


21 

tion,  or  the  communities  in  which  they  do  business  may 
receive  a  larger  revenue  without  increasing  their  tax  rate. 

We  believe  that  this  is  a  step  in  the  right  direction,  and 
at  the  same  time  conservative  enough  to  allow  any  commu- 
nities adversely  affected  to  adjust  themselves  to  it.  The 
plan  does  not  in  any  way  change  the  distribution  of  the 
bank  tax  or  the  street  railway  "  commutation  "  tax. 

Whatever  may  be  the  result,  substantial  justice  should  be 
done ;  and  we  see  no  reason  why  the  Commonwealth  should 
indefinitely  continue  to  hand  over  taxes  constantly  increas- 
ing in  amount  to  favored  communities  which  render  no 
equivalent  in  services. 

IV.     Returns  by  Foreigk-  Corporations. 

It  has  been  brought  to  the  attention  of  the  commission 
that  foreign  corporations  having  property  in  this  Common- 
wealth subject  to  local  taxation  are,  by  our  laws  relating 
to  returns,  placed  upon  a  different  footing  than  domestic 
corporations;  in  that,  while  the  latter  are  obliged  to  make 
a  full  return  to  the  Tax  Commissioner  of  all  their  prop- 
erty, and  to  pay  a  tax  thereon,  either  at  the  State  or  local 
rate,  the  former  are  exempt  from  making  such  a  return. 
This  results  to  the  advantage  of  the  foreign  corporation  in 
the  matter  of  local  taxation,  as  by  not  filing  a  list  of  prop- 
erty with  the  local  assessors  it  merely  pays  the  tax  for 
which  it  is  doomed,  and  the  assessors  have  no  means  of 
finding  out  the  real  value  of  its  personal  property. 

We  therefore  recommend  an  amendment  to  section  sixty- 
six  of  chapter  437  of  the  Acts  of  1903,  by  adding  at  the 
end  thereof  the  following :  "  Every  foreign  corporation 
which  has  property  within  the  Commonwealth  subject  to 
taxation  under  the  laws  thereof  shall  annually,  between 
the  first  and  tenth  day  of  May,  prepare  and  file  in  the 
office  of  the  tax  commissioner  a  return  in  such  form  as 
the  tax  commissioner  may  prescribe,  signed  and  sworn  to 
by  its  president,  treasurer,  and  by  a  majority  of  its  board 
of  directors,  showing  in  detail  all  its  property,  real  and 
personal,  subject  to  local  taxation  within  the   Common- 


22 

wealth  on  the  said  first  day  of  May,  and  of  the  location 
and  value  thereof.'' 

The  present  law  requires  the  owner  of  property  within 
the  Commonwealth,  whether  individual  or  corporation,  to 
file  a  list  of  such  property,  or  submit  to  an  estimate  of 
value  by  the  assessors ;  the  amendment  suggested  will  com- 
pel a  foreign  corporation  to  file,  under  oath,  a  statement  of 
its  property  within  the  Cordmonwealth  in  the  same  way  it 
now  makes  a  return  of  its  financial  condition,  and  in  the 
same  way  a  domestic  corporation  files  a  certificate  of  its 
property  within  the  Commonwealth.  This  will  enable  as- 
sessors to  get  at  the  true  value  of  all  property  subject  to 
local  taxation. 

V.     Taxation  of  Intangible  Property. 

From  earliest  times  the  principal  tax  employed  in  Mas- 
sachusetts has  been  the  general  property  tax.  Its  charac- 
teristic feature  is  that  it  is  intended  to  reach  all  kinds  of 
property,  both  real  and  personal,  and  to  tax  them  at  the 
same  rate.  At  various  times  the  Legislature  has  seen  fit 
to  grant  certain  exemptions;  and  during  the  last  half- 
century  deposits  in  savings  banks,  the  shares  of  national 
banks,  and  shares  of  Massachusetts  corporations,  have  been 
taxed  indirectly  through  excises  levied  on  the  corporations 
themselves,  so  that  they  are  no  longer  taxable  to  the  indi- 
vidual depositors  or  shareholders.  Yet,  despite  these 
changes,  the  greater  part  of  our  revenue  is  derived  from  an 
assessment  upon  the  general  mass  of  property  subject  to 
the  jurisdiction  of  the  Commonwealth. 

This  method  of  taxation  is  frequently  described  as  pecu- 
liarly American  and  democratic,  and  it  is  supposed  to  be 
a  method  which,  if  fully  carried  out,  would  oblige  every 
man  to  contribute  to  the  support  of  public  charges  in  pro- 
portion to  his  ability  to  pay.  But,  as  a  matter  of  fact,  the 
system  is  neither  distinctively  American  nor  democratic; 
and  it  is  admitted  that,  however  excellent  the  intent  of  the 
law,  the  practical  result  has  never  been  that  all  citizens  do 
contribute  in  proportion  to  their  ability  to  bear  the  charges 
of  government. 


23 

The  general  property  tax  was  once  in  nearly  universal 
use  in  Europe,  and  was  brought  to  Massachusetts  by 
the  early  settlers,  who  merely  introduced  here  a  sys- 
tem with  which  they  had  been  familiar  in  the  coun- 
try from  which  they  came.  In  England,  as  in  most  other 
countries  of  Europe,  the  principal  form  of  direct  taxation 
had  long  been  a  general  levy  upon  property.  In  the  sev- 
enteenth century  this  tax  was  known  as  the  subsidy,  and 
in  practical  operation  produced  the  same  results  as  fol- 
lowed its  introduction  in  the  'New  World.  Personal  prop- 
erty always  managed  to  escape  taxation  in  whole  or  in 
part,  so  that  complaints  about  the  inequality  and  injus- 
tice of  the  system  were  almost  as  common  as  they  are 
in  Massachusetts  in  our  own  time.  In  1592  one  writer 
stated  that  not  more  than  five  men  in  London  were  as- 
sessed upon  goods  exceeding  £200,  and  in  1601  Sir  Walter 
Raleigh  complained  that  "  The  poor  man  pays  as  much  as 
the  rich."  About  the  middle  of  the  seventeenth  century 
the  subsidy  became  so  unsatisfactory  that  it  was  replaced 
by  a  new  tax,  known  as  the  monthly  assessment,  which 
was,  however,  but  the  same  thing  imder  another  name. 
The  immediate  result  of  the  change  was  a  somewhat  more 
complete  assessment  of  property;  but  before  long  person- 
alty began  to  evade  taxation,  as  before;  so  that  in  1692 
the  monthly  assessment  was  abolished,  and  replaced  by  a 
new  tax  designed  to  reach  the  true  yearly  value  of  all 
lands,  tenements,  ofiices  and  personal  estates.  This  new 
tax  was  but  another  property  tax  in  a  somewhat  different 
form,  and  it  soon  fared  as  badly  as  its  predecessors.  Dur- 
ing the  eighteenth  century  personal  property  disappeared 
from  the  assessment  rolls  as  rapidly  as  ever  before,  so  that 
by  1798  over  nine-tenths  of  the  levy  fell  upon  real  estate, 
and  less  than  one-tenth  upon  offices  and  personal  estate. 
By  this  time,  in  fact,  the  tax  had  generally  come  to  be 
known  as  the  "  land  tax."  In  some  towns,  we  are  told, 
the  whole  tax  was  assessed  upon  land  and  houses,  and  per- 
sonal estates  wholly  escaped. 

In  179 8  an  act  was  passed  by  which  the  land  tax  be- 
came virtually  a  fixed  charge  upon  the  land,  and  since  that 


24 

time  no  further  attempt  has  been  made  in  England  to  levy 
a  general  property  tax.  The  national  revenues  are  now 
derived  from  an  income  tax,  taxes  on  inheritances  and  the 
usual  indirect  taxes ;  while  local  revenues  are  drawn  chiefly 
from  a  tax  levied  upon  occupiers  of  land,  houses  and  trade 
premises. 

And  in  most  of  the  other  countries  of  Europe  the  result 
has  been  the  same.  In  nearly  all  of  them  the  general 
property  tax  has  been  tried  and  found  wanting,  and  to- 
day it  is  employed  as  a  principal  source  of  revenue  only 
in  the  cantons  of  Switzerland,  where,  however,  it  is  usu- 
.  ally  supplemented  by  taxes  on  income.  In  Holland  prop- 
erty is  still  taxed,  but  at  a  moderate  rate  and  conjointly 
with  a  tax  upon  income.  In  Prussia  and  some  other  Ger- 
man States  a  very  light  property  tax  is  imposed,  supple- 
mentary to  a  general  tax  upon  income;  but  the  rate  is 
exceedingly  low,  —  in  Prussia  only  /4oth  of  1  per  cent., 
—  so  that  the  tax  is  neither  an  appreciable  burden  upon 
taxpayers  nor  an  important  source  of  revenue.  It  appears, 
thierefore,  that  the  general  property  tax  is  not  an  Ameri- 
can invention,  but  a  form  of  taxation  once  common  in 
Europe,  and  now  almost  obsolete.  Modern  tax  systems  are 
based  upon  the  principle  that  it  is  necessary  to  discrim- 
inate between  various  classes  of  property  and  business, 
and  to  employ  different  methods  and  rates  of  taxation  in 
dealing  with  them.  Our  American  States  and  some  of  the 
Swiss  cantons  stand  substantially  alone  in  their  effort  to 
draw  revenue  from  a  general  assessment  upon  all  classes 
of  property  at  a  uniform  rate. 

It  is  equally  erroneous  to  call  the  general  property  tax 
a  democratic  form  of  taxation.  It  is  not  found  in  such 
ultra-democratic  communities  as  the  Australasian  States; 
nor,  with  the  exception  of  Switzerland,  is  it  found  in  those 
countries  of  Europe  in  which  democratic  ideas  have  taken 
deepest  root.  It  was  brought  to  America  from  England  in 
the  seventeenth  century,  when  democracy  existed  neither 
in  the  mother  country  nor  the  colonies,  and  has  been  fast- 
ened upon  us  rather  by  historical  accident  than  because 
of  its  inherently  democratic  qualities. 


OF  THE 

UNIVERSITY 

The  experience  of  our  American  States  with  the  gen- 
eral property  tax  has  been  at  all  points  similar  to  the  ex- 
perience of  Europe.  From  earliest  times  to  the  present 
there  has  been  nothing  but  a  succession  of  complaints  that 
personal  property,  particularly  property  of  an  intangible 
character,  has  escaped  its  fair  share  of  the  burden  of  taxa- 
tion. In  our  own  State,  as  in  others,  the  tax  laws  are  full 
of  evidence  to  this  effect,  and  during  the  last  fifty  years 
a  mass  of  statistics  has  been  collected  which  now  places 
the  matter  beyond  possible  doubt.  Many  if  not  most  of 
our  States  have  appointed  commissions  to  study  the  opera- 
tion of  their  tax  laws  and  devise  methods  of  improving 
them.  The  reports  of  these  commissions  show  wide  diver- 
gence of  opinion  concerning  the  remedies  to  be  adopted, 
but  they  are  substantially  unanimous  upon  one  point,  — 
that  in  the  taxation  of  personal  property  the  general  prop- 
erty tax  has  been  a  dismal  failure. 

Before  considering  the  conditions  in  Massachusetts,  it 
is  desirable  to  refer  briefly  to  the  experience  of  other 
States. 

The  first  fact  to  which  attention  should  be  called  is 
that  under  the  existing  system  personal  property  tends  to 
form  a  constantly  decreasing  proportion  of  the  total  prop- 
erty assessed  for  taxation.  It  is  generally  admitted  that 
under  modern  conditions  the  amount  of  personal  property 
in  existence  always  equals  and  frequently  exceeds  the 
amount  of  real  property.  In  a  State  like  Massachusetts 
or  ^ew  York,  some  would  have  it  that  the  amount  of  per- 
sonal property  is  two  or  three  times  as  large  as  the  amount 
of  real  property ;  whatever  the  exact  proportion  may  be,  it 
is  certain  that  it  cannot  be  less  than,  and  probably  greatly 
exceeds,  the  amount  of  real  property.  During  the  nine- 
teenth century  it  is  certain  that  the  increase  of  personal 
property  was  particularly  rapid;  yet  the  statistics  cover- 
ing this  period  show  that  this  class  of  property  has  usu- 
ally formed  a  decreasing  proportion  of  the  total  assess- 
ment. 

The  United  States  census  presents  statistics  which  are 
of  interest  in  this  connection.   In  1850  it  appears  that  the 


26 

real  property  subject  to  taxation  in  all  the  States  was 
assessed  at  $3,899,000,000  and  the  personal  property  was 
assessed  at  $2,125,000,000.  In  1902,  however,  real  prop- 
erty was  assessed  at  $26,415,000,000  and  personal  prop- 
erty at  $8,923,000,000.  It  will  be  observed  that  in  1902 
the  assessed  value  of  real  property  was  six  or  seven  times 
as  large  as  in  1850,  while  the  assessed  value  of  personal 
property  was  a  little  more  than  four  times  as  large.  These 
figures  apply  to  the  whole  country;  if  we  select  data  for 
those  States  in  which  the  amount  of  personal  property  is 
probably  gTeatest,  the  result  is  still  more  striking.  In  the 
State  of  ISTew  York,  in  the  year  1850,  real  property  was 
assessed  at  $564,649,000  and  personal  property  at  $150,- 
720,000.  In  1902  real  property  was  assessed  at  $5,297,- 
000,000,  while  personalty  was  assessed  at  $672,149,000. 
In  other  words,  real  property  increased  nearly  tenfold 
during  the  half -century  covered  by  the  census  figures,  while 
the  increase  of  personalty  was  but  little  more  than  four- 
fold. In  1850  nearly  one-fourth  of  the  total  assessment 
fell  upon  personal  property,  and  in  1902  a  little  more  than 
one-eighth.  If  we  turn  from  New  York  to  California,  we 
learn  from  a  recent  report  of  a  special  commission  that  in 
1860  personal  property  constituted  46  per  cent,  of  the 
property  assessed  for  taxation,  that  in  1880  it  constituted 
26  per  cent.,  and  in  1905  but  17  per  cent. 

More  serious  than  the  widespread  evasion  of  taxation 
which  these  figures  indicate  is  the  fact  that  the  taxes  actu- 
ally collected  from  personal  property  fall  upon  the  tax- 
payers without  the  slightest  approach  to  equality  and  uni- 
formity. Such  tangible  things  as  merchandise,  machinery, 
live  stock  and  personal  effects  can  be  found  by  the  assess- 
ors, and  taxed  with  some  degree  of  success ;  but  intangible 
property,  consisting  of  money,  credits  and  securities,  can 
be  readily  concealed,  and  eludes  the  most  vigilant  search. 
The  laws  of  the  various  States  provide  more  or  less  rigor- 
ous and  inquisitorial  methods  of  reaching  personal  es- 
tates ;  but  the  execution  of  these  laws  is  entrusted  to  local 
assessors,  who  are  controlled  politically  by  the  very  per- 
sons whom  they  are   expected  to   assess.      The  result  is 


27 

that  strict  enforcement  of  the  law  is  seldom  tolerated,  and 
the  assessment  of  intangible  property  is  in  the  highest 
degree  unequal  and  uncertain. 

The  situation  is  made  worse  by  the  fact  that  the  local 
tax  rates  throughout  the  country  are  so  high  that  they 
take  from  the  holder  of  good  securities  an  excessive 
proportion  of  his  income.  According  to  the  United  States 
census,  the  average  rate  levied  upon  property  assessed 
for  local  taxation  in  the  United  States  in  1902  was  about 
2  per  cent,  of  the  capital  value  thereof,  or,  as  tax 
rates  are  usually  reckoned  in  Massachusetts,  $20  on  each 
$1,000  of  the  assessed  valuation.  In  many  places  real 
estate  was  so  far  undervalued  that  a  tax  of  2  per  cent, 
upon  the  assessed  value  may  not  have  amounted  to  more 
than  1  per  cent.,  or  even  one-half  of  one  per  cent.,  of  the 
true  value  of  the  property.  But  personal  property,  if 
returned  for  taxation,  must  be  valued  usually  at  its  true 
cash  value;  and  it  is  clear  that  a  tax  rate  of  2  per  cent, 
may  take  from  the  holder  one-third  or  one-half  of  his 
income.  Under  such  circumstances  few  persons  can  or 
will  make  returns  of  their  personal  estates ;  and  the  usual 
result  is  that  this  property  is  taxed  by  the  method  of  arbi- 
trary estimate,  or  "  doomage."  When  returns  are  made 
they  come  usually  from  trustees  and  executors  of  small 
estates,  who  cannot  easily  evade  the  law,  and  have  less 
inducement  to  do  so.  Thus  it  comes  about  that  the  tax  on 
personal  property  bears  with  exceptional  severity  upon 
widows  and  orphans,  the  most  helpless  class  in  the  com- 
munity, and  is  most  easily  evaded  by  the  rich  and  power- 
ful, who  can  best  afford  to  pay  it.  Instances  have  come 
to  the  attention  of  members  of  the  present  commission  in 
which  widows  are  paying  upon  small  estates  taxes  that 
take  as  much  as  40  or  50  per  cent,  of  the  income;  whereas 
in  the  same  communities  men  whose  taxable  property 
would  probably  amount  to  millions  are  paying  a  few  hun- 
dred dollars  of  personal  taxes  upon  merely  nominal  as- 
sessments. These  conditions  are  not  peculiar  to  Massa- 
chusetts, —  they  have  been  repeatedly  disclosed  by  the 
reports  of  tax  commissions  in  other  States;  and  among 


28 

students  of  American  taxation  it  has  become  a  mere  truism 
tkat  our  present  taxes  upon  personal  property  actually  fall 
upon  the  taxpayers  in  inverse  proportion  to  their  ability 
to  pay.  Where  personal  property,  particularly  that  of  an 
intangible  character,  is  greatest,  it  contributes  least  to  the 
support  of  public  charges;  and  among  individual  tax- 
payers the  amount  which  each  one  pays  generally  stands 
in  inverse  proportion  to  the  amount  of  personal  property 
which  he  owns.  This  is  now,  and  always  has  been,  the 
result  of  attempting  to  tax  all  property,  real  and  personal, 
at  a  uniform  rate. 

In  order  to  enforce  the  taxation  of  personal  property, 
the  laws  of  practically  all  the  States  require  taxpayers  to 
make  returns  to  the  assessors  under  oath.  These  laws  are 
frequently  a  dead  letter,  and  very  few  such  returns  are 
actually  secured.  But  in  many  States  drastic  efforts  have 
been  made  to  enforce  the  complete  disclosure  of  personal 
property  under  oath,  with  the  result  that  the  laws  have 
produced  more  perjury  than  revenue.  The  reports  of 
State  tax  commissions  are  full  of  testimony  to  this  effect. 
In  them  we  read  that  existing  laws  put  a  penalty  upon 
honesty  and  a  premium  upon  perjury ;  that  they  are  edu- 
cating people  in  the  practice  of  making  false  oaths;  and 
that  a  high  court  in  one  State  has  decided  that  "  Perjury 
in  connection  with  a  man's  tax  lists  does  not  affect  his 
general  credibility  under  oath.'' 

One  of  the  most  drastic  laws  on  any  statute  book  is  the 
law  of  Ohio.  Members  of  the  present  commission  have 
recently  visited  Columbus,  and  have  had  opportunities  to 
talk  with  representative  citizens  in  many  walks  of  life 
and  with  the  highest  officials  of  the  State.  To  all  in- 
quiries about  the  taxation  of  personal  property  in  Ohio 
the  uniform  reply  was :  ^'  We  are  a  State  of  liars  and  per- 
jurers.' Our  law  compels  us  to  make  a  return  of  our 
personal  property  and  to  pay  a  tax  ranging  from  2  to  4 
per  cent,  upon  the  full  cash  value.  I^o  man  can  or  will 
pay  such  an  exorbitant  tax,  and  the  result  is  that  practi- 
cally every  man  defends  himself  from  spoliation  and  con- 
fiscation by  perjuring  his  soul.     You  cannot  overstate  the 


29 

situation.  'No  words  can  do  justice  to  the  iniquities  of 
our  present  system.  The  estates  of  widows  and  orphans 
may  pay  half  of  their  income;  a  few  over-conscientious 
citizens  may  pay  a  corresponding  proportion  of  theirs; 
but  the  general  result  is  that  the  owner  of  money,  credits 
or  securities  either  leaves  the  State  or  makes  a  false  re- 
turn to  the  assessor.  Our  present  system  is  a  school  of 
dishonesty  and  perjury.'' 

If  any  law  could  compel  the  owners  of  intangible  prop- 
erty to  make  a  return  of  their  holdings  and  pay  a  tax 
amounting  to  one-third  or  one-half  of  the  income  there- 
from, it  would  seem  that  the  tax  law  of  Ohio  could  com- 
pel them  to  do  so.  For  many  years  that  State  has  re- 
quired all  taxpayers  to  make  a  return  of  their  personal 
property  "  according  to  its  true  value  in  money,"  and  this 
statement  must  be  made  under  oath.  But,  besides  that, 
the  law  authorizes  any  county  auditor  to  summon  a  re- 
calcitrant citizen  before  a  judge  of  the  probate  court,  and 
makes  it  the  duty  of  such  judge  to  punish  the  citizen  for 
contempt  if  he  refuses  to  answer  any  question  which  the 
auditor  may  ask  concerning  his  personal  property  subject 
to  taxation.  Nor  is  this  all.  The  auditor  may  summon 
any  other  person,  including  the  cashier  of  any  bank,  whom 
he  may  suppose  to  have  knowledge  of  any  taxpayer's 
affairs,  and  may  compel  him  to  testify  under  oath.  Such 
an  investigation  may  extend  back  over  a  period  of  five 
years ;  and  the  law  provides  that,  in  case  of  proved  evasion 
or  false  statement,  five  years'  back  taxes  may  be  collected, 
with  an  addition  of  50  per  cent,  as  a  penalty.  When  we 
remember  that  the  average  tax  rate  in  Ohio  at  the  present 
moment  is  2%  per  cent,  of  the  capital  value  of  taxable 
property,  it  will  be  seen  that,  with  the  penalty  included, 
the  amount  that  may  be  recovered  from  a  man  who  evades 
taxes  for  a  period  of  five  years  amounts  to  no  less  than 
18.75  per  cent,  of  the  entire  value  of  his  property. 

Under  such  a  law  it  was  discovered  twenty-five  years 
ago  that  the  assessment  of  personal  property  was  decreas- 
ing not  only  relatively  but  absolutely.  In  1887  the  Gov- 
ernor of  Ohio  sent  to  the  Legislature  a  special  message 


30 

dealing  with  the  question  of  taxation.  "  Personal  prop- 
erty/' he  said,  "  is  valued  all  the  way  from  full  value 
down  to  nothing.  In  fact,  the  great  majority  of  the  per- 
sonal property  of  the  State  is  not  returned,  but  entirely 
and  fraudulently  withheld  from  taxation.  So  far  as  per- 
sonal property  is  concerned,  the  fault  is  chiefly  with  the 
people  who  list  their  property  for  taxation.  The  idea 
seems  largely  to  prevail  thart  there  is  injustice  and  in- 
equality in  taxation,  and  that  there  is  no  harm  in  cheat- 
ing the  State,  although,  to  do  so,  a  false  return  must  be 
made  and  perjury  committed.  This  offence  against  the 
State  and  good  morals  is  too  frequently  committed  by 
men  of  wealth  and  reputed  high  character,  and  of  corre- 
sponding position  in  society."  To  remedy  the  conditions 
thus  disclosed,  the  Legislature  extended  to  all  parts  of  the 
State  a  device  which  had  been  tried  previously  in  a  few 
counties.  It  was  provided  that  the  county  officials  might 
employ  agents  to  ferret  out  property  escaping  taxation; 
and  these  agents,  known  as  tax  inquisitors,  were  to  receive 
as-  compensation  a  part  of  the  taxes  recovered  through 
their  efforts.  Under  the  operation  of  this  enlightened  and 
civilized  law,  some  millions  of  personal  property  were  un- 
covered and  placed  upon  the  tax  rolls;  but  this  effect  was 
merely  temporary,  since  many  wealthy  persons  were  driven 
out  of  the  State,  and  their  personal  property  was  thereby 
placed  beyond  reach.  Many  citizens  of  Ohio  at  this  time 
took  up  residences  in  the  city  of  Washington,  others  moved 
to  Kew  York;  and  it  is  disputed  by  no  one  that  the  effect 
of  the  tax-inquisitor  law  was  to  drive  capital  out  of  the 
State.  In  many  cases  the  law  is  reported  to  have  led  to 
extensive  blackmail;  and  it  is  a  matter  of  common  knowl- 
edge that  persons  with  sufficient  political  influence  were 
able  to  secure  immunity  from  the  tax  inquisitors. 

It  will  be  seen  that  the  law  makers  of  Ohio  have  about 
exhausted  human  ingenuity  in  inventing  drastic  methods 
of  securing  the  disclosure  of  personal  property.  The  only 
known  expedient  which  they  seem  to  have  overlooked  is 
the  use  of  torture,  which  was  employed  in  the  Roman 
Empire  in  order  to  force  reluctant  taxpayers  to  disclose 


31 


their  personal  estates.  What  has  been  the  result  of  the 
drastic  measures  which  Ohio  has  seen  fit  to  employ  ? 
From  the  reports  of  the  State  Auditor  we  learn  that  in 
1870  personal  property,  including,  according  to  the  Ohio 
classification,  the  property  of  railroads  and  some  other 
corporations,  amounted  to  38  per  cent,  of  the  total  prop- 
erty assessed  for  taxation;  in  1905  it  amounted  to  31  per 
cent. ;  so  that  in  Ohio,  as  elsewhere,  an  increasing  propor- 
tion of  the  burden  of  taxation  has  fallen  upon  real  estate. 
But  even  more  significant  are  the  figures  which  show 
the  amount  of  intangible  property  assessed  under  Ohio's 
severe  laws.  The  reports  of  the  State  Auditor  show  the 
total  amount  of  money,  credits  and  securities  assessed  for 
taxation  in  each  year,  and  from  them  the  following  table 
may  be  compiled :  — 


Table  showing  the  Assessed  Value  of  Intangible  Property  in  Ohio. 


Ybar. 

Money, 

Credits. 

Securities. 

Total. 

1881,   . 
1893,   . 
1906,   . 

$40,600,000 
41,600,000 
59,900,000 

$101,100,000 

111,200,000 

77,200,000 

$8,600,000 

9,700,000 
10,800,000 

$150,300,000 
162,500,000 
147,900,000 

It  will  be  observed  that  under  the  operation  of  the  tax- 
inquisitor  law  the  amount  of  intangible  property  assessed 
for  taxation  increased  but  $12,000,000  during  the  twelve 
years  from  1881  to  1893,  —  an  amount  which  is  abso- 
lutely insignificant  when  compared  with  the  growth  of 
the  State  in  wealth  and  population  during  this  period. 
Since  1893,  moreover,  there  has  been  an  actual  decrease 
in  the  amount  of  intangible  property  placed  upon  the  as- 
sessment roll,  showing  that  even  Ohio's  rigorous  system, 
supplemented  by  the  barbarous  tax-inquisitor  law,  has  sig- 
nally failed  in  its  effort  to  reach  this  class  of  property. 
And  these  figures,  which  show  the  results  for  the  entire 
State,  are  very  far  from  revealing  the  real  inefficiency  and 
iniquity  of  the  system.  In  the  cities  of  Ohio,  where  the 
amount  of  intangible  property  is  greatest,  the  assessments 


32 

are  smallest ;  and  in  the  country  districts,  where  the  amount 
of  such  property  is  relatively  less,  the  assessments  are  high- 
est. In  Cincinnati,  where  the  tax-inquisitor  system  first 
took  root,  the  escape  of  intangible  property  from  taxation 
is  notorious;  and  the  same  thing  is  true  of  Cleveland  and 
the  other  larger  cities  in  the  State.  ISTot  only  has  Ohio 
failed  to  reach  the  general  mass  of  intangible  property, 
but  it  has  failed  most  signally  in  those  counties  where  the 
accumulations  of  such  property  are  the  greatest.  Here,  as 
elsewhere,  the  rule  holds  true  that  the  taxes  falling  upon 
personal  property  are  in  inverse  proportion  to  the  ability 
of  the  citizens  to  pay.  The  conditions  were  truly  described 
by  the  Ohio  Tax  Commission  of  1893 :  "It  must  be  per- 
fectly apparent  that  we  do  not  succeed  in  getting  upon  the 
tax  duplicate  any  appreciable  part  of  the  personal  property 
which  is  not  tangible  and  which  is  not  in  sight ;  "  and 
again :  "  The  system  as  it  is  actually  administered  results 
in  debauching  the  moral  sense.  It  is  a  school  of  perjury. 
It  sends  large  amoimts  of  property  into  hiding.  It  drives 
capital  in  large  quantities  from  the  State.'' 

In  this  place  it  is  proper  to  remark  that  Ohio  is  now 
considering  a  thorough  revision  of  her  system  of  taxa- 
tion. A  commission  is  considering  an  amendment  to  the 
Constitution  which  will  permit  the  State  to  abandon  the 
attempt  to  tax  all  property  at  a  uniform  rate,  and  intro- 
duce a  modern  system  of  taxation.  No  one  denies  that 
the  existing  system  is  a  complete  failure,  and  one  of  the 
principal  objects  of  the  proposed  reform  is  a  change  in 
the  taxation  of  personal  property. 

It  is  needless  to  consider  in  detail  the  experience  of 
other  States.  None  have  enacted  severer  laws  than  Ohio, 
and  in  none  has  the  attempt  to  tax  all  property  at  a  uni- 
form rate  ever  met  with  success.  So  far  as  personal 
property  is  concerned,  the  situation  has  been  so  accurately 
described  in  a  decision  of  the  United  States  Circuit  Court 
of  Appeals  that  the  present  commission  cannot  do  better 
than  quote  this  opinion  ^  as  its  own :  — 

1  National  Bank  of  Baltimore  v.  City  of  Baltimore,  40  C.  C.  A.,  257,  258. 


33 

The  taxation  of  personal  property  has  always  and  everywhere 
been  a  vexatious  problem.  Horses  and  cattle,  wagons  and  car- 
riages, the  implements  of  husbandry  and  household  furniture,  — 
all  things,  in  fact,  which  are  visible,  and  cannot  readily  be  con- 
cealed, including  therein  shares  in  incorporated  companies,  which 
may  be  compelled  by  the  law  creating  them  to  make  returns, — 
are  within  comparatively  easy  reach  of  the  tax  assessors.  But 
the  great  mass  of  personal  property,  in  which  the  wealth  of  a 
country  is  invested,  consisting  of  bonds  and  other  evidences  of 
credit,  which  can  be  readily  hidden,  escape  the  eye  of  the  as- 
sessor; and  nothing  is  more  conclusively  settled  by  human  ex- 
perience than  that  it  is  impossible  to  collect  taxes  upon  this  kind 
of  property  with  any  reasonable  approach  to  accuracy  or  equal- 
ity, and  this  is  not  for  want  of  long-sustained  and  earnest  effort 
to  accomplish  it.  There  is  a  monotonous  uniformity  in  the 
reports  of  the  failures  of  every  system  attempted,  however  strin- 
gent may  be  the  legislation,  or  however  arbitrary  or  despotic  may 
be  the  powers  with  which  the  assessors  may  be  clothed.  The 
heavy  hand  of  the  tax-gatherer  always  falls  upon  the  widow  and 
the  orphan,  upon  trustees  and  guardians,  whose  estates  are  re- 
quired by  law  to  be  revealed  to  the  courts  of  probate,  and  upon 
those  only  whose  consciences  are  unusually  scrupulous,  and  who, 
having  least  experience  in  business,  are  least  able  to  bear  the  bur- 
dens; while  the  most  inadequate  returns  are  invariably  made  by 
the  rich,  who  are  usually  most  ingenious  in  evasion,  and  most 
fertile  in  expedients  to  escape  taxation.  The  result  is  that  always 
and  everywhere  no  appreciable  part  of  such  intangible  property 
is  reached  by  laws,  however  ingeniously  framed  or  severely  en- 
forced. The  heavy  and  ever-increasing  rate  of  taxation  in  our 
cities  makes  this  result  inevitable.  Safe  investments  are  rarely 
found  which  yield  more  than  4  per  cent.,  and,  the  rate  of  tax- 
ation being  generally  from  2  to  3  per  cent.,  it  is  not  to  be  won- 
dered at  that  there  should  be  endeavor  to  escape  a  burden  which 
takes  more  than  half  of  their  income.  Evasion  and  downright 
perjury  is  the  consequence. 

The  history  of  the  general  property  tax  in  Massachu- 
setts is  not  materially  different  from  its  history  in  other 
States.  From  1651  to  the  present  date  complaints  that 
personal  property  evades  taxation  are  met  at  every  hand. 
During  the  last  thirty-five  years  four  commissions  or  spe- 
cial committees,  exclusive  of  the  present,  have  been  ap- 
pointed to  study  the  question;  and  their  reports  disclose 
the  fact  that  the  taxation  of  intangible  property  is  the 


34 

weakest  point  in  the  entire  system.  There  is  reason  to  be- 
lieve that  the  administration  of  the  law  by  Massachusetts 
assessors  has  been  considerably  better  than  the  administra- 
tion of  the  laws  of  many  other  States.  The  taxation  of 
intangible  property  has  not  been  such  a  complete  farce 
with  us  as  it  has  been  elsewhere ;  yet  we  find  no  one  who 
supposes  that  we  are  now  taxing  more  than  10  or  20  per 
cent,  of  the  money,  credits  -and  securities  taxable  under 
our  present  law.  After  careful  study  of  the  subject,  our 
commission  is  forced  to  the  same  conclusion  that  was 
reached  by  the  commission  of  1897,  which  we  reproduce 
here :  — 

It  is  obvious,  however,  that  this  method  of  taxation  encounters, 
as  to  intangible  property,  exceptional  and  indeed  almost  in- 
superable difficulties.  There  are  no  such  external  indications 
of  taxable  liability  as  appear  in  the  case  of  live  stock,  vessels, 
stock  in  trade  or  machinery.  General  repute  as  to  the  possession 
of  large  means,  or  a  mode  of  Hfe  indicating  an  ample  income,  do 
not  necessarily  signify  anything  as  to  taxable  securities.  The 
investments  of  a  person  of  means  may  be  in  real  estate  within 
or  without  the  State,  or  in  Massachusetts  stocks  or  mortgages,  or 
in  bonds  of  the  United  States.  An  ample  income,  indicated  by 
general  expenditure,  may  be  derived  either  from  such  sources 
already  taxed  or  not  taxable,  or  from  trade  and  profession,  or 
from  taxable  securities,  —  these  last  two  being  taxable,  but  tax- 
able at  very  different  rates.  The  assessors  hence  must  rely  on 
their  knowledge  and  judgment  in  estimating  the  taxable  prop- 
erty of  this  form.  In  a  great  and  complicated  society,  with  a 
mass  of  investments  ramifying  in  all  directions,  the  assessors 
are  here  confronted  with  a  task  which  the  best  of  them  could  not 
execute  satisfactorily.  Even  the  most  capable,  most  experienced 
and  most  conscientious  assessors  could  not  have  sufficient  knowl- 
edge and  judgment.  But  only  average  capacity  can  be  expected; 
experience  is  often  lacking;  and,  even  for  conscientious  as- 
sessors, the  temptations  to  laxity  are  in  many  cases  irresistible. 
Consequently,  the  taxation  of  this  form  of  property  is  in  high 
degree  uncertain,  irregular  and  unsatisfactory.  It  rests  mainly 
on  guesswork;  it  is  blind,  and  therefore  unequal.  Here  is  its 
greatest  evil,  though  not  its  only  evil.  It  is  haphazard  in  its 
practical  working,  and  hence  demoralizing  aHke  to  taxpayers  and 
to  tax  officials. 


35 


In  its  application  to  intangible  property  our  present 
system  stands  condemned,  in  the  first  place,  as  unequal 
and  ineffective.  The  inequalities  in  the  assessment  of 
persons  owning  intangible  property  are  as  common  and  as 
glaring  as  those  found  in  other  States.  The  ineffective- 
ness of  the  system  in  making  personal  property  contribute 
to  the  support  of  government  may  be  readily  shown  by 
the  following  statistics :  — 


Table  showing  Various  Classes  of  Property 
Massachusetts. 


assessed  for  Taxation  in 


1 

Per  Cent,  of 

Year 

Real 

Personal 

Personal  Property 

Property. 

Property. 

to  Total 
Property  assessed. 

1861,  . 

»B52,100,000 

3309,400.000 

11861,600,000 

35.9 

1871,  . 

991,200,000 

506,200,000 

1,497,400,000 

33.8 

1881,  . 

1.149,900,000 

4Vt8,300,000 

1,648,200,000 

30.2 

1891,  . 

1,678,500,000 

566,500,000 

2,245,000,000 

25.2 

1901,  . 

2,370,600,000 

663,300,000 

3,033,900,000 

21.8 

1906,  . 

2,668,100,000 

736,800,000 

3,404,900,000 

21.6 

It  will  be  seen  that  for  nearly  half  a  century  personal 
property  has  constituted  a  decreasing  proportion  of  the 
total  assessment,  and  that  real  estate  has  borne  an  increas- 
ing share  of  the  burden  of  taxation;  this,  too,  in  spite  of 
the  fact  that  during  this  period  the  value  of  personal  prop- 
erty has  probably  increased  faster  than  the  value  of  real 
property. 

Similar  testimony  to  the  ineffectiveness  of  present 
methods  of  taxing  personal  property  may  be  gathered 
from  another  table,  which  shows  the  per  capita  amount 
of  personal  property  assessed  for  taxation  in  Massachu- 
setts :  — 


Table  showing  Per  Capita  Assessment  of  Personal  Property  in  Massa- 
chusetts. 


1861, 
1870, 
1880, 


$249  86 
354  14 
265  62 


$247  43 
236  98 


36 

During  this  period  both  the  total  and  the  per  capita 
wealth  of  the  State  have  greatly  increased,  and  there  can 
be  no  doubt  that  the  increase  of  personal  property  was 
more  rapid,  rather  than  less  rapid,  than  the  increase  of 
real  property.  Yet  the  per  capita  assessment  upon  per- 
sonal property  has  declined  from  $249.86  to  $236.98. 

Figures  such  as  have  been  presented  to  show  the  in- 
effectiveness of  present  methods  of  taxing  personal  prop- 
erty are  sometimes  criticised  upon  the  ground  that  during 
the  last  fifty  years  large  amounts  of  personal  property 
have  been  exempted  from  taxation  in  the  hands  of  the 
owners ;  and  it  is  said  that  but  for  these  exemptions  the 
assessed  value  of  personal  property  might  have  shown  a 
normal  increase.  In  1862  deposits  in  savings  banks  were 
taxed  directly  to  the  corporations  at  a  reduced  rate,  and 
ceased  to  be  taxable  locally  to  the  depositors;  in  1864, 
when  our  general  corporation  tax  was  established,  shares 
of  Massachusetts  corporations  in  a  similar  manner  became 
exempt  from  taxation  in  the  hands  of  the  shareholders; 
in  1873,  when  the  present  bank  tax  was  finally  established, 
the  shares  of  national  banks  were  exempted  from  local 
taxation;  and,  finally,  the  act  of  1881,  which  now  governs 
the  taxation  of  mortgages,  exempted  mortgages  from  taxa- 
tion as  personal  property.  This  argument  would  have 
much  force  if  the  classes  of  property  now  exempt  had 
been  fully  taxed  under  the  earlier  methods ;  but  as  a  mat- 
ter of  fact  they  evaded  taxation  so  largely  that  the  local 
assessment  of  personal  property  was  not  greatly  reduced 
when  they  were  exempted  from  taxation. 

In  1861,  for  instance,  the  deposits  in  the  savings  banks 
of  Massachusetts  amounted  to  $44,785,000,  and  of  this 
sum  the  local  assessors  had  found  and  taxed  not  more  than 
$9,655,000.  Accordingly,  the  law  of  1862  took  less  than 
$10,000,000  of  taxable  property  off  the  local  assessment 
rolls,  and  the  aggregate  assessment  of  personal  property 
for  that  year  was  $315,311,000,  as  compared  with  $309,- 
397,000  for  1861. 

There  are  no  figures  showing  the  value  of  the  shares  of 
Massachusetts  corporations  taxed  locally  in  the  hands  of 


37 


shareholders  before  the  law  of  1864  was  enacted;  but  the 
following  figures,  showing  the  total  amount  of  personal 
property  assessed  for  taxation  in  Massachusetts  from  1861 
to  18T0,  show  that  the  law  of  1864  had  no  great  effect 
upon  the  local  assessments :  — 


Table  showing  the  Assessed  Value  of  Personal  Property  subject  to 
Local  Taxation. 


1861, 

«309,400,000 

1866, 

»430,300,000 

1862, 

315,300,000 

1867, 

457,700,000 

1863, 

343,600,000 

1868,   . 

469,800,000 

1864, 

324,600,000 

1869,   . 

503,100,000 

1865    .    .    . 

386,100,000 

1870,   . 

516,100,000 

It  will  be  seen  that  in  1864  the  assessed  value  of 
personal  property  declined  from  $343,500,000  to  $324,- 
600,000,  which  would  indicate  that  the  law  of  1864  made 
a  difference  of  not  more  than  5  or  10  per  cent,  in  the  total 
assessment. 

The  effect  of  the  law  of  1873  relating  to  the  taxation 
of  bank  shares  may  be  estimated  in  a  similar  manner.  In 
1872  the  personal  property  assessed  for  local  taxation  was 
valued  at  $565,294,000;  and  in  1873,  under  the  new  law, 
it  was  valued  at  $537,388,000.  Here,  again,  the  loss  from 
the  total  assessment  did  not  amount  to  more  than  5  or  10 
per  cent.,  even  allowing  for  the  fact  that  upon  other  items 
than  bank  shares  there  may  have  been  a  considerable  in- 
crease in  the  valuation. 

The  law  of  1881  relating  to  the  taxation  of  mortgages 
seems  to  have  taken  about  $48,000,000,  from  the  property 
subject  to  local  taxation,  if  we  may  trust  the  ^'  Aggregates 
of  Polls,  Property  and  Taxes  "  for  the  years  in  question. 
According  to  these  figures,  $62,509,000  of  debts  secured 
by  mortgage  were  assessed  for  taxation  in  1881,  and  only 
$14,693,000  were  assessed  the  following  year.  This  loss 
slightly  reduced  the  total  assessment  upon  personal  prop- 
erty in  the  Commonwealth  in  1882,  but  it  did  not  prevent 
the  assessment  for  1883  from  rising  above  the  figures  for 
1881.  For  the  three  years  in  question  the  total  assess- 
ment of  personal  property  was  as  follows :  — 


38 

Table  showing  Total  Assessment  of  Personal  Property. 


1881, 
1882, 


^498,300,000 
494,700,000 


1883, 


15505,200,000 


If  allowance  could  be  made  for  the  changes  produced 
by  the  laws  of  1862,  1864,  1873  and  1881,  it  is  probable 
that  a  comparison  of  the  year's  1861  and  1883  might  re- 
sult somewhat  less  unfavorably  for  personal  property. 
There  would  appear  a  smaller  decline  in  the  proportion 
which  personal  property  bears  to  the  total  assessment,  and 
the  per  capita  amount  of  personal  property  would  be  about 
as  large  as  in  1861.  But  this  would  not  modify  our  gen- 
eral conclusion,  because  since  1881  there  has  been  no 
change  in  the  tax  laws  that  has  taken  any  considerable 
amount  of  personal  property  from  the  assessment  lists; 
nevertheless,  the  absolute  and  relative  assessment  of. 
personal  property  has  steadily  declined.  In  1883  per- 
sonal property  formed  about  29  per  cent,  of  the  total 
property  assessed  for  taxation,  while  in  1906  it  formed 
a  little  more  than  21  per  cent.  In  1885,  the  nearest  cen- 
sus year,  the  per  capita  assessment  of  personal  property 
was  $254,  and  in  1905  it  was  $237.  It  is  clear,  therefore, 
that  whatever  may  have  happened  between  1861  and  1883, 
there  can  be  no  escape  from  the  conclusion  that  personal 
property  has  evaded  taxation  in  an  ever-increasing  degree. 
Although  it  is  probably  increasing  faster  than  the  value 
of  real  property,  it  forms  a  decreasing  part  of  the  total 
assessment;  and  although  the  per  capita  amount  in  the 
Commonwealth  must  have  greatly  increased,  the  per  capita 
assessment  has  steadily  declined.  I^o  further  proof  is 
necessary  to  show  the  ineffectiveness  of  our  present  meth- 
ods of  taxing  personal  property. 

Enough  has  already  been  said  concerning  the  unjust 
manner  in  which  the  present  tax  on  personal  property 
falls  upon  individual  citizens,  and  attention  must  now  be 
called  to  the  manner  in  which  it  has  concentrated  intan- 
gible property  in  a  small  number  of  favored  towns.     This 


39 

is  a  subject  which  has  been  studied  by  previous  commis- 
sions. The  commission  of  1875  showed  that  wealthy  citi- 
zens had  even  then  begun  to  change  their  residences  to 
desirable  localities,  where  the  tax  rates  were  low  and  the 
assessments  light  or  even  nominal.  It  showed,  for  in- 
stance, that  in  1865  the  town  of  Eahant  assessed  $12,710 
of  personal  estate,  and  had  a  tax  rate  of  $15  per  $1,000 ; 
and  that  in  1872  the  assessment  of  personal  estate  had 
advanced  to  $5,507,000,  while  the  tax  rate  had  fallen  to 
$3.50  per  $1,000.  It  showed  that  a  personal  estate  taxed 
in  Boston  for  $2,000,000  had  been  transferred  to  a  town 
in  Worcester  County  where  the  subsequent  valuation  of 
all  personal  property  amounted  to  no  more  than  $1,383,- 
000 ;  and  that  another  estate  taxed  at  $750,000  had  been 
transferred  to  a  town  in  Norfolk  County  without  increas- 
ing the  assessment  of  personal  property  in  that  town  by 
more  than  $250,000.  The  commission  of  1897  presented 
statistics  which  showed  that,  of  $83,792,000  of  intangible 
property  assessed  in  all  the  towns  of  the  Commonwealth, 
not  less  than  $52,570,000  was  found  in  18  selected  towns, 
having  a  population  of  only  62,529.  The  present  com- 
mission has .  made  a  careful  study  of  this  subject,  and 
finds  that  the  concentration  of  intangible  property  in  a 
few  towns  has  now  proceeded  so  far  as  to  constitute  one 
of  the  gravest  problems  confronting  the  Commonwealth. 
Attention  is  invited  first  to  some  statistics  compiled 
from  returns  gathered  by  the  Tax  Commissioner  in  1904. 
These  show  for  all  the  cities  and  towns  of  the  Common- 
wealth, with  the  exception  of  Boston,  the  assessed  value 
of  various  classes  of  personal  property.  In  one  column 
we  have  placed  the  most  important  items  of  tangible  prop- 
erty, such  as  merchandise,  machinery  and  live  stock;  and 
in  the  other  all  remaining  classes  of  personal  property 
which  could  not  be  separately  enumerated.  The  last  col- 
umn doubtless  includes  a  certain  amount  of  tangible  prop- 
erty, such  as  household  goods,  personal  effects  and  boats 
or  vessels;  but  it  consists  for  the  most  part  of  intangible 
property,  such  as  money,  credits  and  securities.    Our  table 


40 


divides  the  towns  into  three  classes:  the  first  contains  17 
towns/  which  show  the  greatest  concentration  of  intan- 
gible property  within  their  borders;  the  second  contains 
14  towns,  ^  in  which  this  concentration,  although  marked, 
has  not  yet  been  carried  so  far ;  the  third  class  includes  all 
the  remaining  towns ;  and  this  is  followed  by  the  statistics 
for  all  the  cities  with  the  exception  of  Boston.^ 

Table  showing  the  Distribution  of  Tangible  and  Intangible  Property 

in  1904. 


Towns  and  Cities. 


Merchandise, 

Machinery.  Live 

Stock. 


Other  Personal 

Property,  chiefly 

Intangible. 


17  towns, 

14  towns, 

All  other  towns,  . 

Cities,  excluding  Boston, 

Total.     . 


$2,818,800 

2,:«3,400 

65,608,800 

149,465,000 


3220,226,000 


8166,893,100 
13,007,800 
41,860,600 

103,798,200 


$225,559,700 


It  will  be  observed  that  the  17  towns  in  the  first  group 
have  50  per  cent,  more  intangible  property  than  all  of  the 
towns  in  the  third  group,  and  that  the  14  towns  in  the 
second  group  have  nearly  one-third  as  much  intangible 
property  as  all  the  towns  in  the  third  group.  It  appears, 
furthermore,  that  the  proportion  of  tangible  property  to 
intangible  in  the  17  towns  is  approximately  as  1  to  24, 
that  in  the  14  towns  it  is  approximately  as  1  to  6,  and 
that  in  all  the  other  towns  it  is  approximately  as  3  to  2, 
—  a  proportion  which  holds  also  for  all  the  cities  exclud- 
ing Boston. 

The  situation  is  made  worse  by  our  present  method  of 
distributing  among  the  various  towns  the  franchise  tax 


1  The  towns  in  this  list  are  as  follows:  Brookline,  Cohasset,  Dalton,  Dover, 
Falmouth,  Groton,  Hamilton,  Hopedale,  Lancaster,  Lincoln,  Manchester,  Milton, 
Nahant,  Wellesley,  Wenham,  Weston  and  Westwood.  In  Dalton  and  Hopedale, 
the  concentration  of  personal  property  is  due  to  the  presence  of  large  industries, 
and  has  come  about  in  a  perfectly  legitimate  way.  In  all  the  others  large  indus- 
tries are  conspicuous  for  their  absence,  and  the  concentration  of  personal  property 
has  come  about  in  the  manner  described  above. 

2  The  towns  in  this  list  are  as  follows:  Belmont,  Boxford,  Dartmouth,  Dedham, 
Easton,  Hingham,  Lexington,  Longmeadow,  Mattapoisett,  North  Andover,  South- 
borough,  Stockbridge,  Swampscott  and  Yarmouth. 

3  Boston  is  omitted,  since  statistics  for  this  city  were  not  included  in  the  Tax 
Commissioner's  compilation. 


41 


upon  corporations.  With  the  exception  of  the  tax  upon 
street  railways,  the  franchise  taxes  are  distributed  accord- ^/^ 
ing  to  the  domicile  of  the  shareholders,  the  State  retain- 
ing taxes  paid  in  respect  of  shares  owned  by  nonresidents, 
and  the  several  towns  and  cities  receiving  taxes  paid  in 
respect  of  shares  owned  by  residents  of  the  Common- 
wealth. This  brings  it  about  that  the  towns  in  which  in- 
tangible property  is  so  greatly  concentrated  receive  a  very 
large  proportion  of  the  taxes  paid  by  Massachusetts  cor- 
porations and  national  banks,  while  the  other  towns  re- 
ceive a  much  smaller  proportionate  share.  The  result  is 
that  a  few  towns  draw  large  revenues  from  personal  prop- 
erty locally  taxed  and  from  taxes  paid  by  Massachusetts 
corporations,  so  that  they  enjoy  low  tax  rates  and  are  in 
easy  financial  circumstances;  while  the  other  towns,  and 
most  of  the  cities,  receiving  little  revenue  from  corporation 
taxes  and  local  taxes  on  personal  property,  have  high  tax 
rates  and  encounter  serious  financial  problems. 

The  situation  will  be  made  clear  by  the  following  table, 
showing  the  total  revenue  derived  by  various  classes  of 
towns  and  cities  in  1905  from  personal  property  subject 
to  local  taxation,  and  from  the  taxes  upon  Massachusetts 
corporations  and  national  banks :  — 


Tabh  showing  Per  Capita  Receipts  from  Corporation  Taxes  and  Local 
Taxes  on  Personal  Property. 


Towns  and  Cities. 


Per  Capita 
Receipts 
from  Corpora- 
tion Taxes. 


Per  Capita 
Receipts  from 

Taxes  on 
Personal  Prop- 
erty. 


Total  Per  Capita 

Receipts  from 

Corporation  and 

Personal 
Property  Taxes. 


Boston, 

All  other  cities 

17  towns,  showing-greatest  concen- 
tration of  personal  property. 

14  towns,  showing  some  degree  of 
concentration. 

All  other  towns,     .... 


«2  83 
1  37 
9  50 
3  82 
1  08 


S6  40 
3  42 

13  11 
5  60 
2  24 


$9  23 
4  79 

22  61 
9  42 
3  32 


It  will  be  seen  that  the  average  town  receives  not  more 
than  $3.32  per  capita  from  all  taxes  upon  corporate  fran- 
chises and  personal  property,   and  must  provide  for  the 


42 

rest  of  its  expenses  by  taxes  upon  real  estate;  while  the 
17  most  favored  towns  receive  no  less  than  $22.61  from 
taxes  upon  corporate  franchises  and  personal  property. 
The  average  city,  with  the  exception  of  Boston,  receives 
$4.79  from  all  taxes  on  corporate  franchises  and  personal 
property,  —  hardly  more  than  one-fifth  of  what  the  17 
favored  towns  receive;  while  Boston,  the  commercial  and 
financial  center  of  the  Gom'monwealth,  receives  but  $9.23 
per  capita  from  personal  property,  —  about  40  per  cent, 
as  much  as  goes  to  the  favored  towns.  And  in  all  these 
comparisons  it  must  be  remembered  that  the  large  receipts 
of  the  favored  towns  from  personal  property  subject  to 
local  taxation  are  secured  with  low  tax  rates,  which  are  not 
more  than  two-thirds  the  average  rates  levied  on  property 
throughout  the  Commonwealth.  In  the  17  most  favored 
towns  the  per  capita  receipts  from  corporations  and  from 
local  taxes  on  personal  property  range  from  $10.21  to 
$69.42,  and  the  tax  rates  in  1905  ranged  from  $7.25  per 
thousand  up  to  $14.70  per  thousand.  When  it  is  recalled 
that  the  average  tax  rate  in  Massachusetts  is  about  $17  per 
thousand,  the  peculiarly  favorable  position  of  these  towns 
will  be  readily  apparent. 

The  concentration  of  personal  property  in  a  small  num- 
ber of  towns  has  been  brought  about  almost  entirely  dur- 
ing the  last  forty  years.  This  will  be  made  clear  by 
statistics  showing  the  per  capita  receipts  from  local  taxes 
on  personal  property  and  corporation  taxes  distributed 
according  to  the  domicile  of  shareholders  in  1865,  1885 
and  1905.^  Since  3  (Hopedale,  Wellesley  and  Westwood) 
of  the  17  favored  towns  formed  parts  of  other  townships 
in  1865,  the  following  tables  are  based  upon  a  comparison 
of  the  14  remaining  towns  with  the  rest  of  the  Common- 
wealth :  — 


1  For  1905  the  street  railway  tax  is  omitted,  since  ttiis  is  not  distributed  accord- 
ing to  the  domicile  of  the  shareholders. 


43 


Tables  showing  Per  Capita  Receipts  from  Corporation  and  Personal 
Property  Taxes. 


Per  Capita 
Taxes  on  Per- 
sonal Property. 

Per  Capita 

Receipts  from 

Corporation 

Taxes. 

Total. 

For  State,  exclusive  of  selected  towns, 
14  favored  towns, 

^5  00  1 
4  82 

^0  81 
2  05 

$5  81 
6  87 

1885. 

For  State,  exclusive  of  selected  towns, 
14  favored  towns, 

$3  33 
9  24 

$1  15 
5  04 

$4  48 
14  28 

1005. 

For  State,  exclusive  of  selected  towns, 
14  favored  towns 

$3  73 
13  65 

m  62 
10  36 

$5  35 
24  01 

1  Estimated  in  some  part. 

It  will  be  seen  that  during  this  period  of  forty  years 
the  per  capita  taxes  levied  on  personal  property  in  the  14 
favored  towns  have  risen  progressively  from  $4.82  to 
$13.65,  while  in  the  rest  of  the  State  they  have  declined 
from  approximately  $5.00  to  $3.73.  At  the  same  time  in 
the  favored  towns  the  amounts  received  from  corporation 
taxes  distributed  according  to  the  rule  of  domicile  have 
risen  from  $2.05  to  $10.36,  while  in  the  rest  of  the  State 
they  have  risen  from  $0.81  to  $1.62.  From  both  sources 
the  favored  towns  received  $6.87  per  capita  in  1865  and 
$24.01  per  capita  in  1905,  while  the  per  capita  receipts 
of  the  rest  of  the  State  actually  declined  from  $5.81  in 
the  former  year  to  $5.35  in  the  latter.  The  figures  for 
the  intermediate  year,  1885,  indicate  that  the  evil  is 
progressive;  and  under  our  present  laws  there  is  no  as- 
signable limit  to  the  extent  to  which  it  may  be  carried, 
short  of  the  concentration  of  practically  all  intangible 
property  and  all  corporation  taxes  distributed  according 


44 

to  the  rule  of  domicile  in  a  handful  of  favored  towns. 
The  situation  is  worse  to-day  than  it  was  when  the  com- 
mission of  1875  called  the  matter  to  the  attention  of  the 
Legislature,  and  is  worse  than  it  was  when  the  question 
was  raised  by  the  commission  of  1897.  In  the  judgment 
of  the  present  commission  there  are  few  matters,  if  any, 
more  worthy  of  serious  consideration.  Unless  a  radical 
reform  can  be  secured,  a 'few  communities  are  certain  to 
grow  richer;  while  the  rest  of  the  State,  so  far  as  the 
taxation  of  personal  property  is  concerned,  is  bound  to 
grow  steadily  poorer. 

The  figures  already  presented  are  perhaps  sufficient  for 
the  purposes  of  this  report,  but  it  may  be  well  to  supple- 
ment them  by  another  table,  showing  the  per  capita  assess- 
ment of  personal  property  subject  to  local  taxation  in  these 
14  favored  towns  and  the  rest  of  the  Commonwealth  for 
the  years  1861  and  1905  :  ^  — 

Table  showing  Per  Capita  Assessment  on  Personal  Property. 


Year. 


Per  Capita  Amount 

of  Personal  Property 

asseeaed  in  14  Favored 

Towns. 


Per  Capita  Amount  of 

Personal  Property 

assessed  in  Rest  of 

State. 


1861, 
1905, 


$432  36 
1,194  00 


8247  66 
219  05 


It  will  be  remembered  that  an  earlier  table  showed  that 
the  per  capita  assessment  of  personal  property  in  the  entire 
State  had  declined  from  $249  in  1861  to  $236  in  1905. 
The  figures  just  presented  make  it  clear  that,  outside  of 
these  towns,  there  has  been,  a  decline  from  $247.55  to 
$219.05,  while  in  these  towns  the  per  capita  assessment 
has  advanced  from  $432.36  to  $1,194. 

In  explanation  of  the  conditions  which  have  been  shown 
to  exist,  it  is  sometimes  said  that  more  property  is  assessed 
for  local  taxation  in  these  towns  because  the  assessors  are 


1  In  computin!?  the  per  capita  fiprures  for  1861,  the  population  of  the  State  in  the 
census  year  1860  has  been  used.  This  will  result  in  some  slight  error,  but  the  error 
will  probably  be  the  same  for  the  14  towns  as  for  the  rest  of  the  State,  so  that  the 
comparisons  made  will  not  be  affected  thereby. 


45 

doing  their  full  duty  under  the  law,  and  that  other  towns 
would  be  as  well  off  if  their  assessors  were  equally  efficient. 
This  explanation,  if  correct,  would  not  account  for  the  fact 
that  the  amounts  which  the  favored  towns  receive  from  cor- 
poration taxes  distributed  according  to  domicile  have  in- 
creased even  more  rapidly  than  the  amounts  they  receive 
from  personal  property  subject  to  local  taxation.  But  in 
point  of  fact  in  most  of  these  towns  the  situation  is  quite 
the  reverse  of  what  is  alleged.  The  commission  has  rea- 
son to  believe  that  in  a  few  of  the  favored  towns  the  local 
assessors  at  the  present  day  endeavor  conscientiously  to 
enforce  the  law,  —  Brookline  is  perhaps  the  best  example ; 
but  in  the  others  lax  administration  is  the  rule.  Personal 
property  has  moved  and  is  moving  from  places  where  the 
assessors  try  to  do  their  duty  to  places  where  men  of  wealth 
can  establish  residence  and  virtually  fix  their  own  per- 
sonalty assessments. 

How  faithfully  assessors  in  many,  if  not  most,  of  the 
favored  towns  do  their  duty  under  the  law  may  be  in- 
ferred from  the  cases  cited  in  the  report  of  the  commis- 
sion of  1875,  and  from  other  cases  which  have  been 
brought  to  the  attention  of  the  present  commission.  In 
1882  a  personal  estate  assessed  in  Boston  at  $800,000  was 
removed  to  one  of  these  favored  towns  which  in  that  year 
had  a  total  valuation  of  $462,900,  of  which  only  $44,200 
was  upon  personal  property.  The  assessors  in  that  town 
were  notified  of  the  man's  removal,  and  the  amount  of  his 
personal  assessment  in  Boston  was  duly  certified  to  them. 
In  1883  it  appears  that  the  total  valuation  of  all  prop- 
erty in  the  town  rose  to  $741,600,  of  which  $325,865 
represented  the  assessment  of  personal  property.  From 
this  it  appears  that  the  assessors  in  that  town  did  their 
duty  so  faithfully  that  the  addition  to  their  tax  rolls  of 
a  personal  estate  which  they  knew  to  be  valued  at  $800,000 
increased  the  total  assessment  of  personal  property  about 
$280,000.  The  bargain  of  course  was  an  advantageous 
one  for  the  town  in  question,  since  the  tax  rate,  which  in 
1882  had  been  $11,  was  reduced  to  $7  in  1883 ;  but  that 
the  transaction  showed  a  purpose  strictly  to  enforce  the 


46 

laws  of  the  Commonwealth  can  hardly  be  maintained. 
This  is  but  one  case  of  the  many  which  could  be  cited.  In 
1891  a  careful  study  revealed  the  fact  that  during  the 
twenty  years  immediately  preceding  Boston  had  lost  per- 
sonal estates  assessed  at  $75,000,000  through  the  removal 
of  persons  to  15  of  these  favored  towns.  In  1871  the  15 
towns  in  question  had  assessed  for  taxation  $26,750,000  of 
personal  property;  twenty  years  later  the  assessment  had 
advanced  to  $52,558,000,  —  an  increase  of  $25,808,000. 
On  the  assumption  that  there  had  been  no  increase  of 
personal  property  in  these  towns  except  the  $75,000,000 
gained  by  the  removal  of  certain  taxpayers  from  Boston,  it 
would  appear  that  the  local  assessors,  in  the  faithful  per- 
formance of  their  duty  under  the  law,  had  assessed  about 
one-third  of  the  taxable  property  brought  into  their  juris- 
diction. And  if  we  assume,  as  we  must,  that  there  had 
been  some  increase  in  taxable  personal  property  other  than 
that  brought  into  the  towns  by  the  taxpayers  referred  to, 
we  must  conclude  that  the  local  assessors  had  taxed  less 
than  one-third  of  the  property  removed  from  the  tax  lists  of 
Boston.  It  can  hardly  be  necessary  to  pursue  this  subject 
further.  Intangible  property  has  never  been  known  to 
move  from  places  where  it  is  inadequately  assessed  to  places 
where  it  is  assessed  at  its  full  value;  and  in  this  case  we 
have  the  clearest  evidence  that  personal  estates  transferred 
from  Boston  to  these  favored  towns  were  assessed  at  only  a 
fraction  of  the  valuations  placed  upon  them  by  the  Boston 
assessors. 

It  has  also  been  stated  that  these  favored  towns  have 
attracted  wealthy  people  because  of  their  natural  advan- 
tages as  places  of  residence.  That  many,  if  not  most,  of 
these  towns  are  favored  in  this  regard  cannot  be  denied, 
but  it  is  entirely  incorrect  to  assume  that  they  have  any 
monopoly  of  fine  scenery  and  other  natural  attractions.  It 
is  too  clear  for  dispute  that  a  low  tax  rate  and  a  nominal 
assessment  upon  one's  personal  property  are  desirable  and 
even  indispensable  adjuncts  to  the  natural  advantages 
which  a  town  can  offer  prospective  residents;  and  it  is 


47 

certain  that  a  rigorous  assessment  of  personal  property  and 
a  tax  rate  of  $20  in  the  thousand  will  destroy  the  charm  of 
the  finest  scenery  in  the  Commonwealth. 

In  the  opinion  of  the  commission,  the  present  methods 
of  taxing  intangible  property  are  ineffective  in  producing 
revenue,  and  highly  unjust  in  their  operation  on  indi- 
vidual taxpayers.  They  have  had  the  further  effect  of 
concentrating  this  class  of  property  in  a  few  towns,  and 
from  the  nature  of  the  case  must  continue  to  do  so.  They 
constitute  the  gravest  problem  connected  with  our  system 
of  taxation,  and  until  they  are  changed  our  tax  laws  will 
remain  vitally  and  fundamentally  defective. 

In  considering  possible  remedies  for  the  admittedly  un- 
satisfactory outcome  of  our  taxation  of  intangible  property, 
the  present  commission,  like  its  predecessors,  has  found 
that  there  are  two  opposing  schools  of  thought.  Repre- 
sentatives of  the  one  school  have  urged  that  most,  if  not 
all,  classes  of  intangible  property  should  be  exempted  from 
taxation  upon  the  ground  that  it  is  impossible  to  tax  them 
with  a  reasonable  approach  to  equality  or  certainty.  They 
contend,  furthermore,  that  credits  and  most  classes  of 
securities  represent  merely  titles  or  evidences  of  owner- 
ship of  tangible  property  which  is  already  taxed  either  in 
this  State  or  in  other  States  where  it  happens  to  be  located. 
To  tax  this  tangible  property,  and  then  to  tax  the  evidences 
of  ownership  in  it,  is  declared  to  be  double  taxation;  and, 
since  the  tangible  property  is  always  taxed  at  its  sitiLS, 
it  is  considered  unjust  to  levy  a  second  tax  upon  credits 
or  securities.  Representatives  of  the  other  school  contend, 
as  they  have  always  done,  that  the  evil  of  double  taxation 
is  not  so  serious  as  is  alleged;  and  that  it  is  unjust  that 
persons  who  draw  large  incomes  from  intangible  property 
should  enjoy  full  protection  under  the  laws  of  the  Com- 
monwealth, and  yet  contribute  nothing  to  the  support  of 
public  charges.  They  admit  that  there  is  much  evasion 
of  the  present  tax  upon  personal  property,  but  contend 
that  the  true  remedy  is  to  strengthen  the  existing  law  and 
improve  the  methods  of  administering  it.     Between  the 


48 

opposing  schools  matters  have  long  been  at  a  deadlock  in 
Massachusetts,  as  in  other  States;  and  tax  commissions, 
here  as  elsewhere,  have  usually  been  unable  to  come  to 
an  agreement  upon  any  proposed  remedy. 

Representatives  of  the  first  school  have  urged  the  com- 
mission to  recommend  to  the  Legislature  House  Bill  ISTo. 
733  of  1906.  This  bill  provides  that,  in  order  to  avoid 
double  taxation,  certain  cl^tsses  of  personal  property  shall 
be  exempt  from  the  tax  now  imposed  upon  them,  and  in 
lieu  thereof  shall  be  taxed  upon  the  income  they  yield. 
This  measure,  however,  would  remedy  only  a  part  of  our 
present  difficulties,  since  it  does  not  apply  to  all  classes 
of  intangible  property.  It  would  furthermore  make  the 
income  from  the  property  to  which  it  applies  taxable  at 
the  varying  local  rates  levied  in  the  cities  and  towns  of 
the  Commonwealth,  and  would  not  remove,  though  it 
would  reduce,  the  inducement  which  taxpayers  now  have 
to  move  from  places  where  the  tax  rate  is  high  into  places 
where  it  is  low.  For  these  and  other  reasons  the  commis- 
sion is  unable  to  recommend  the  bill  to  the  favorable  con- 
sideration of  the  Legislature.  If  intangible  property  is 
to  be  taxed  at  all,  the  commission  believes  that  the  tax 
should  be  levied  at  a  uniform  rate  throughout  the  Com- 
monwealth. 

A  second  proposal  has  come  from  representatives  of  the 
school  which  believes  that  all  property  should  be  taxed 
in  substantially  the  same  way.  In  view  of  the  growing 
concentration  of  intangible  property  in  towns  where  tax 
rates  are  low,  it  is  suggested  that  the  tax  upon  this  class 
of  property  should  be  made  uniform  throughout  the  Com- 
monwealth, and  should  be  levied  at  the  average  rate  com- 
puted by  the  Tax  Commissioner  for  the  taxation  of 
corporate  franchises.  At  the  present  time  this  would  mean 
a  uniform  tax  of  a  trifle  more  than  $17  upon  each  $1,000 
of  the  valuation  of  intangible  property.  This  plan  also 
the  commission  is  unable  to  recommend  to  the  Legislature, 
because  it  believes  that  a  uniform  tax  of  $17  in  the 
thousand  would  be  even  more  injurious  in  its  results  than 
our  present  method. 


49 

Those  who  support  this  proposal  do  not  realize  that 
a  tax  of  $17  upon  the  fair  cash  value  of  good  securi- 
ties is  equivalent  to  a  tax  of  from  30  to  50  per  cent,  of 
the  income  received  by  the  taxpayers.  From  securities 
yielding  the  investor  6  per  cent,  a  tax  of  $17  takes  nearly 
30  per  cent,  of  the  income ;  from  securities  yielding  5  per 
cent,  it  takes  over  33  per  cent,  of  the  income;  from  those 
yielding  4  per  cent,  it  takes  over  42  per  cent,  of  the  in- 
come; and  from  those  yielding  3%  per  cent,  it  takes 
nearly  50  per  cent,  of  the  income.  These  rates  are  ex- 
orbitant in  themselves  and  are  so  excessive  that  they  are 
virtually  uncollectible  except  from  the  most  helpless  or 
ignorant  taxpayers.  Outside  of  our  American  Common- 
wealths, no  civilized  government  in  the  world  thinks  of 
levying  such  heavy  taxes  upon  property  as  mobile  and  as  </ 
readily  concealed  as  money,  credits  and  securities.  Here 
and  there  a  widow,  an  executor  of  some  estate,  or  some 
person  ignorant  of  methods  of  evading  the  law,  may  have 
to  submit  to  our  present  tax  upon  a  full  valuation; 
but  no  one  else  thinks  of  submitting  to  such  taxation.  To 
every  person  who  has  appeared  before  the  present  com- 
mission to  advocate  the  plan  now  under  consideration, 
the  question  has  been  put:  Would  you  pay  a  tax  of  $17 
in  the  thousand  upon  investments  yielding  you  4  or  5 
per  cent.  ?  In  every  case  the  answer  has  been  in  the  nega- 
tive, although  in  some  instances  it  was  still  maintained 
that  other  people  might  be  willing  or  could  be  compelled 
to  do  so.  The  commission  has  been  unable  to  find  a  single 
advocate  of  the  plan  who  considers  that  he  himself  ought 
to  pay  a  tax  amounting  to  one-third  or  one-fourth  of  his 
income;  and  it  is  forced  to  the  conclusion  that  the  State 
should  not  compel  any  one  to  do  so. 

To  this  conclusion  it  may  be  replied  that  if  all  intangi- 
ble property  were  placed  upon  the  assessment  rolls  at  its 
full  value  the  average  tax  levied  throughout  the  State 
w^ould  be  reduced  to  $10  or  $12  per  thousand.  This  is 
perhaps  true,  and  it  would  be  worthy  of  consideration 
if  there  were  the  slightest  possibility  that  all  such  property 
could  be  found  and  assessed  by  the  methods  proposed ;  but 


50 

in  point  of  fact  there  is  no  such  possibility.  It  is  well 
known  to  every  taxpayer  that  for  a  decade  or  more  the 
average  rate  levied  upon  property  throughout  the  Com- 
monwealth has  ranged  from  $15  to  $17  per  thousand,  and 
with  that  fact  before  him  he  would  not  be  likely  to  submit 
to  a  full  assessment  of  his  personal  estate.  Even  if  it  were 
known  that  the  rate  would  be  $10  or  $12  per  thousand, 
it  is  not  probable  that  anything  like  a  full  disclosure  of 
his  intangible  property  could  be  obtained  from  the  aver- 
age taxpayer.  A  rate  of  $10  is  25  per  cent,  of  the  income 
derived  from  a  4  per  cent,  investment,  and  is  20  per  cent, 
of  the  income  from  an  investment  yielding  5  per  cent. 
Such  rates  are  double  or  treble  the  rates  which  European 
countries  attempt  to  levy  upon  personal  incomes,  and  are 
so  high  that  the  tax  would  even  then  be  uncollectible. 

The  commission  has  already  stated  its  belief  that  the 
concentration  of  intangible  property  in  a  few  favored  towns 
has  become  an  intolerable  evil,  but  it  is  also  of  the  opinion 
that  it  is  better  for  the  Commonwealth  to  have  property 
concentrated  in  these  towns  than  to  have  it  driven  into 
other  States ;  for  our  present  laws  make  tax-dodging  virtu- 
ally a  necessity  for  the  resident  of  the  average  city  or 
town  who  owns  any  large  amount  of  taxable  securities. 
He  cannot,  and  in  justice  should  not,  pay  a  tax  amounting 
to  one-third  or  one-fourth  of  his  income;  and  if  pressed 
by  the  assessors  has  no  alternative  but  to  make  a  false 
return  or  else  move  to  a  more  favored  locality.  We  are 
not  now  considering  the  case  of  a  man  who  is  unwilling 
to  make  any  contribution  to  the  support  of  public  charges, 
but  rather  the  case  of  the  average  citizen,  who  is  un- 
doubtedly willing  to  do  his  duty  as  a  taxpayer.  If  he 
owns  taxable  securities,  he  has  no  alternative  but  to  evade 
taxation  or  pay  an  unreasonable  and  confiscatory  tax.  'Not 
a  few  such  persons  have  in  the  past  taken  up  residence 
in  other  States,  and  it  is  certain  that  a  uniform  tax  of 
$17  per  thousand,  if  rigorously  enforced,  would  compel 
many  others  to  follow  their  example.  This  has  been  the 
result  of  the  drastic  tax  laws  of  Ohio,  and  the  commission 


51 

has  no  desire  to  see  Massachusetts  repeat  the  experience 
of  that  State.  After  all,  the  purpose  of  a  tax  law  is  to  l/^ 
obtain  revenue,  not  to  annoy  and  harass  the  citizens ;  and 
a  tax  which  would  drive  capital  from  the  Commonwealth 
is  the  most  unwise  tax  that  could  be  placed  on  the  statute 
book. 

It  is  always  to  be  remembered  that  there  is  an  absolute 
limit  to  the  tax  rate  which  a  government  can  impose  upon 
any  class  of  property.  During  our  civil  war  the  United 
States  attempted  to  collect  a  tax  of  $2  per  proof  gallon 
upon  spirits,  with  the  result  that  the  law  was  evaded  to 
such  an  extent  that  the  revenue  was  greatly  reduced;  and 
it  was  found  that  when  the  tax  was  reduced  to  50  cents 
per  proof  gallon  the  revenue  increased  from  $14,290,000 
to  $33,785,000.  Similar  instances  abound  in  the  litera- 
ture of  finance,  and  some  of  them  will  be  referred  to  in 
subsequent  pages.  It  is  sufficient  at  this  point  for  the 
commission  to  record  its  belief  that  a  tax  of  $17  per 
thousand  upon  intangible  property  is  higher  than  any 
government  in  the  world  can  collect  with  even  tolerable 
certainty  or  uniformity.  So  far  as  we  can  learn,  no  such 
tax  ever  has  been  collected,  and  we  see  no  reason  to  think 
that  it  ever  can  be.  We  are  obliged,  therefore,  to  reject 
the  plan  for  a  uniform  tax  upon  intangible  property  at  the 
average  rate  computed  for  the  corporation  tax. 

In  the  membership  of  the  present  commission  there  are 
representatives  of  both  of  the  schools  to  which  reference 
has  been  made.  Some  of  the  members  came  to  their  work 
with  the  belief  that  intangible  property  should  be  immedi- 
ately exempted  from  taxation,  while  others  desired  to 
strengthen  the  existing  law,  in  the  hope  of  securing  a 
full  return  of  all  classes  of  taxable  property.  After  four 
months  of  study,  differences  of  opinion  still  exist  concern- 
ing what  would  be  an  ideal  system  of  taxation  for  Massa- 
chusetts; but  an  agreement  has  been  reached  upon  a 
desirable  method  of  reforming  the  taxation  of  intangible 
property. 

The  commission  recommends  that  the  tax  levied  upon 


1/ 


52 

this  class  of  property  be  made  uniform  throughout  the 
State,  and  that  the  rate  be  fixed  at  3  mills  upon  each 
dollar  of  the  fair  cash  valuation  ($3  per  $1,000).  If  this 
can  be  done,  it  will  be  possible  to  adopt  more  effective 
methods  of  enforcing  the  law;  and  the  commission  ac- 
cordingly recommends  a  number  of  administrative  pro- 
visions designed  to  bring  about  a  full  assessment  of 
intangible  property. 

This  plan,  the  commission  believes,  is  the  most  practi- 
cable method  of  reaching  the  two  chief  evils  in  our  present 
methods  of  taxing  intangible  property.  These  evils  are: 
first,  the  excessive  rates  now  levied  upon  money,  credits 
and  securities;  and,  second,  the  diversity  in  our  local 
tax  rates,  which  tends  to  drive  this  class  of  property 
into  favored  localities.  The  plan  is  substantially  similar 
to  laws  which  have  been  in  operation  in  Pennsylvania 
and  Maryland  for  a  number  of  years,  and  have  stood 
well  the  test  of  time  and  experience.  For  nearly  thirty 
years  Pennsylvania  has  taxed  intangible  property  at  a 
uniform  rate  of  4  mills  upon  each  dollar  of  the  fair 
cash  valuation  ($4  per  $1,000).  As  found  in  the  statutes, 
the  tax  has  two  parts:  first,  a  tax  upon  intangible 
property  other  than  corporate  loans;  and,  second,  a  tax 
upon  the  loans  of  counties,  municipalities  and  business 
corporations  doing  business  in  Pennsylvania.  In  reality, 
however,  the  two  laws  form  a  single  consistent  scheme  for 
the  taxation  of  intangible  property  at  a  uniform  rate.  The 
tax  on  intangible  property  other  than  corporate  loans  is 
administered  by  county  officials.  It  applies  to  money  at 
interest,  money  owing  by  solvent  debtors,  mortgages,  public 
securities  not  exempt  from  taxation  nor  included  in  the 
tax  on  corporate  loans,  and  shares  of  stock  in  all  corpora- 
tions other  than  companies  subject  to  taxation  upon  their 
capital  stock  or  their  business  in  Pennsylvania.  It  is 
collected  by  the  counties  and  paid  into  the  State  treasury, 
but  the  State  then  returns  three-fourths  of  the  proceeds 
to  the  various  counties.  The  tax  upon  corporate  loans  is 
deducted  by  the  treasurers  of  counties,  municipalities  and 


53 

business  corporations  when  paying  interest  upon  loans, 
and  is  paid  directly  into  the  State  treasury,  the  proceeds 
accruing  wholly  to  the  State. 

The  Supreme  Court  of  the  United  States  has  decided 
that  a  State  has  no  constitutional  power  to  require  cor-  ^ 
porations  to  deduct  a  tax  from  interest  paid  to  nonresident 
bondholders.  It  has  further  decided  that  foreign  corpora- 
tions doing  business  in  the  State  cannot  be  required  to 
deduct  a  tax  from  interest  money  disbursed  in  another 
State.  The  practical  outcome,  therefore,  is  that  the  tax  . 
on  corporate  loans  has  been  collected  chiefly  from  Penn- 
sylvania corporations,  and  then  only  from  interest  paid 
on  bonds  owned  by  residents  of  Pennsylvania.  The  two 
taxes  herein  described  have  practically  the  same  scope  as 
the  tax  which  the  commission  proposes  that  Massachusetts 
should  adopt.  They  apply  to  all  money,  all  credits,  all 
stock  in  business  corporations  not  taxed  directly  by  the 
State,  and  to  all  county,  municipal  and  corporation  loans 
owned  by  residents  of  Pennsylvania.  The  only  thing  in- 
cluded in  the  Pennsylvania  law  which  would  not  be  in- 
cluded in  the  tax  proposed  for  Massachusetts  would  be 
mortgages  upon  taxable  real  estate  within  the  Common- 
w^ealth. 

In  Pennsylvania  the  tax  upon  intangible  property  other 
than  corporate  loans  is  assessed  by  the  county  officials  upon 
the  basis  of  returns  made  by  taxpayers.  The  law  requires 
every  person  to  make  a  return  of  all  taxable  money,  credits 
and  securities;  and  this  statement  must  be  made  under 
oath.  Upon  the  refusal  or  failure  of  any  person  to  make 
the  required  return,  the  assessors  are  authorized  to  make 
an  assessment  from  the  best  information  they  can  obtain; 
but  the  commission  learns  that  in  most  counties  of  the 
State  this  doomage  law  is  not  rigidly,  enforced.  A  very 
large  part  of  the  tax,  possibly  50  per  cent.,  is  collected  from 
mortgages  on  real  estate,  since  the  law  makes  rigorous 
provisions  for  ascertaining  the  ownership  of  this  class  of 
property;  a  considerable  amount  is  paid  by  trust  com- 
panies upon  personal  property  which  they  hold  in  trust; 


54 


and  the  remainder,  possibly  30  or  35  per  cent.,  is  paid 
by  individuals  assessed  by  sworn  return  or  by  dooming. 
Even  allowing  for  the  large  amount  collected  from  mort- 
gages, the  increase  of  property  taxed  by  the  county  officials 
at  the  rate  of  4  mills  has  been  very  remarkable,  as  shown 
by  the  following  table :  — 


Table  showing  the  Amount  of  Fntangible  Property  locally  assessed. 


Even  if  one-half  of  the  assessment  represents  mortgages 
on  real  estate,  the  results  are  striking.  In  other  States  we 
have  shown  ^  that  personal  property,  particularly  property 
of  an  intangible  character,  forms  a  decreasing  proportion 
of  the  total  assessment,  and  sometimes  fails  to  increase 
at  all  with  the  growth  of  wealth  and  population.  But  in 
Pennsylvania  during  the  last  twenty-two  years  intangible 
property  taxed  at  the  rate  of  4  mills  has  increased  much 
more  rapidly  than  the  assessed  valuation  of  real  estate, 
which  between  1885  and  1903  increased  from  $1,697,- 
202,000  to  $2,986,197,000.  The  most  remarkable  increase 
in  the  assessment  of  intangible  property  occurred  between 
1885  and  1888,  and  resulted  from  a  stricter  doomage  law. 
But  even  after  1888,  the  law  remaining  unchanged,  the 
assessments  showed  a  normal  and  healthy  increase,  as  the 
assessment  of  property  should  in  a  community  that  is  in- 
creasing in  wealth  and  population.  With  the  single 
exception  of  Maryland,  no  such  results  have  been  achieved 
by  any  State  in  the  Union. 

It  is  not  to  be  inferred  from  what  has  been  said  that 
the  local  assessors  discover  all  intangible  property  subject 
to  taxation,  and  list  it  at  its  true  value.  In  point  of  fact, 
the  administration  of  the  Pennsylvania  law  is  far  from 
rigorous;  and,  except  in  the  case  of  mortgages  and  per- 
sonal property  held  in  trust  by  trust  companies,  there  is 

1  See  page  25  et  seq. 


55 

more  or  less  evasion.  But,  even  so,  a  far  greater  propor- 
tion of  such  property  is  reached  than  in  other  States,  and 
the  persons  who  are  taxed  pay  a  reasonable  rate,  which 
does  not  produce  material  hardship.  The  tax  is  not  looked 
upon  as  odious  or  confiscatory,  and  yields  a  substantial 
revenue  which  steadily  increases  from  year  to  year.  The 
commission  believes  that  in  Massachusetts  a  similar  law 
could  be  administered  with  even  greater  success,  since  in 
this  State  the  average  board  of  assessors  would  probably 
do  its  work  with  greater  efficiency  than  is  shown  by  the 
county  officials  in  most  parts  of  Pennsylvania.  It  is  possi- 
ble also  for  Massachusetts  to  profit  by  the  experience  of 
Pennsylvania,  and  to  introduce  many  improvements  in 
the  administration  of  the  law. 

The  tax  upon  corporate  loans  is  collected  by  methods 
which  make  evasion  comparatively  difficult.  Although 
limited  in  its  operation  to  bonds  owned  by  residents  of 
Pennsylvania,  the  yield  has  steadily  increased  at  a  satis- 
factory rate.  Prom  1886  to  1890  the  receipts  averaged 
$300,000  per  year,  this  amount  being  somewhat  less  than 
usual,  because  considerable  sums  were  withheld  by  cor- 
porations pending  the  outcome  of  litigation.  From  1891 
to  1895  the  receipts  averaged  $1,130,000,  from  1896  to 
1900  they  averaged  $1,260,000,  from  1901  to  1905  they 
averaged  $1,530,000,  and  in  1906  amounted  to  $2,352,000. 
Here,  as  in  the  figures  showing  the  results  of  the  tax  upon 
intangible  property  assessed  locally,  we  find  a  healthy  and 
normal  increase.  It  is  clear  that  the  tax  on  corporate 
loans,  even  though  it  is  collected  only  on  securities  held 
in  Pennsylvania,  does  not  drive  this  class  of  property  out 
of  the  State.  The  legal  questions  which  originally  arose 
under  the  requirement  that  the  corporations  deduct  the 
tax  have  now  been  settled,  and  it  may  be  regarded  as  estab- 
lished that  a  State  has  the  right  to  require  domestic  cor- 
porations to  deduct  a  tax  in  this  manner  from  securities 
owned  by  residents.  In  recent  years  corporations  have 
often  voluntarily  assumed  the  payment  of  the  tax,  in  order 
to  be  able  to  advertise  that  their  bonds  are  nontaxable  in 
Pennsylvania. 


56 

Prom  the  figures  just  given,  showing  the  yield  in  1906, 
it  can  be  computed  that  at  the  present  time  the  tax  on 
corporate  loans  reaches  approximately  $600,000,000  of 
property.  If  we  add  to  this  figure  the  $1,014,000,000  of 
intangible  property  assessed  by  the  county  officials,  we  have 
a  total  of  $1,614,000,000  of  intangible  property  taxed  in 
Pennsylvania.  This  figure  excludes  the  shares  of  corpora- 
tions taxed  directly  by  the 'State.  It  amounts  to  nearly 
one-half  of  the  assessed  value  of  real  estate  subject  to 
taxation  in  Pennsylvania.  If  we  deduct  the  amount 
representing  the  probable  assessment  of  mortgages,  we  still 
have  more  than  $1,000,000,000  of  intangible  property 
assessed  for  taxation.  No  other  State  in  the  Union  has 
ever  made  an  equally  favorable  showing.  Ohio,  with  a 
far  more  drastic  law,  assessed  in  1906  only  $147,900,000, 
and  this  includes  mortgages ;  so  that  the  figures  are  to  be 
compared  with  the  total  of  $1,614,000,000  in  Penn- 
sylvania. 

A  comparison  between  Pennsylvania  and  Massachusetts 
is  equally  interesting.  The  former  State,  as  has  been 
shown,  taxes  over  $1,000,000,000  of  intangible  property, 
exclusive  of  mortgages  and  other  things  not  taxable  under 
a  similar  law  in  Massachusetts;  and  this  figure  amounts 
to  nearly  30  per  cent,  of  the  assessed  value  of  real  estate 
taxable  in  that  Commonwealth.  In  Massachusetts  there 
are  no  figures  which  show  the  exact  amount  of  intangible 
property  now  reached  by  the  local  assessors.  In  1889,  the 
last  year  in  which  such  figures  were  collected,  the  intangi- 
ble personal  property  amounted  to  $247,000,000,  out  of 
a  total  valuation  of  $501,000,000  on  personal  estates, 
exclusive  of  resident  bank  stock.  These  figures  would  indi- 
cate that  at  that  time  intangible  property  formed  less  than 
half  of  the  assessed  value  of  personal  property.  An  inde- 
pendent investigation,  based  upon  returns  to  the  Tax 
Commissioner  in  1904  and  estimates  furnished  by  the 
Boston  board  of  assessors,  shows  that  in  that  year  the  pro- 
portion which  intangible  property  bore  to  the  total  assess- 
ment of  personalty  was  substantially  45  per  cent.      In 


57 

1906  the  assessed  value  of  personal  property  exclusive  of 
resident  bank  stock  was  $705,000,000;  and,  assuming 
that  45  per  cent,  of  this  is  intangible  property,  we  may 
conclude  that  under  our  present  law  we  are  reaching 
approximately  $317,000,000  of  money,  credits  and  securi- 
ties. This  is  about  30  per  cent,  of  the  similar  property 
taxed  in  Pennsylvania,  while  our  population  is  approxi- 
mately half  as  large  as  the  population  of  that  State.  In 
Pennsylvania  the  assessed  value  of  intangible  property 
such  as  comes  within  the  scope  of  the  Massachusetts  law 
is  30  per  cent,  of  the  value  of  real  property.  In  Massa- 
chusetts our  $317,000,000  of  intangible  property  was  less 
than  12  per  cent,  of  the  assessed  value  of  real  property  in 
1906.  The  comparison  results  favorably  to  Pennsylvania 
in  both  instances,  even  though,  as  has  been  remarked,  the 
general  efticiency  of  local  boards  of  assessors  is  probably 
greater  in  Massachusetts  than  in  that  State. 

The  experience  of  Maryland  is  as  interesting  and  in- 
structive as  that  of  Pennsylvania.  In  1896  a  law  was 
enacted  which  limited  the  tax  which  cities  and  counties 
could  levy  on  certain  classes  of  securities  to  30  cents  on 
each  $100  of  the  valuation  ($3  per  $1,000).  This  applied 
simply  to  the  bonds  of  all  corporations,  public  as  well  as 
private,  and  to  the  shares  of  foreign  corporations.  Shares 
of  Maryland  corporations,  since  they  are  reached  in  an- 
other way,  are  not  subject  to  local  taxation.  In  addition 
to  the  local  taxes  of  30  cents  per  $100,  the  securities  in- 
cluded in  the  provisions  of  the  act  of  1896  are^  subject  to 
the  State  tax,  which  usually  amounts  to  16  cents  per  $100; 
so  that  the  combined  State  and  local  taxes  amount  to 
approximately  46  cents  per  $100  ($4.60  per  $1,000).  For 
eleven  years,  therefore,  Maryland  has  had  a  uniform  tax 
of  moderate  amount  upon  certain  classes  of  securities,  and 
the  results  of  the  law  have  been  most  striking. 

No  statistics  are  obtainable  for  the  entire  State;  but  the 
bulk  of  this  property  undoubtedly  is  held  in  the  city  of 
Baltimore,  and  in  that  city  complete  statistics  are 
available :  — 


58 


Table  showing  Assessed   Value  of  Securities  taxed   in  the   City  of 

Baltimore. 


1896 

36,000,000 

1902, 

389,900,000 

1897 

55,000,000 

1903, 

94,300,000 

1898 

55,000,000 

1904,    ... 

85,900,000 

1899,  .... 

61,900,000 

1905, 

104,200,000 

1900 

65,800,000 

1906, 

120,400,000 

1901,  .... 

68,900,000 

1907, 

150.900,000 

In  1896,  when  these  securities  were  taxed  at  the  full 
local  rate,  which  was  then  about  $20  per  $1,000,  the 
assessment  was  not  more  than  $6,000,000.  The  following 
year,  when  the  tax  was  reduced  to  about  $4.60  per  $1,000, 
the  assessment  increased  more  than  ninefold.  Since  that 
time  the  assessment  has  nearly  trebled,  and  Baltimore  is 
now  taxing  twenty-five  times  as  much  of  this  class  of  prop- 
erty as  it  taxed  in  1896  at  the  higher  rate.  An  interesting 
comparison  can  be  made  between  Boston  and  Baltimore. 
According  to  estimates  furnished  by  the  board  of  assessors, 
it  appears  that  in  1907  about  $110,000,000  of  intangible 
property  was  assessed  in  Boston.  This  included  money 
on  hand,  on  deposit  and  at  interest;  debts  due  to  tax- 
payers ;  municipal  bonds  and  other  public  stocks  or  securi- 
ties; shares  of  foreign  corporations;  and  bonds  of  all 
corporations,  domestic  and  foreign.  At  the  same  time,  in 
Baltimore,  under  the  operation  of  the  uniform  tax,  the 
assessment  upon  shares  of  foreign  corporations  and  bonds 
of  domestic  and  foreign  corporations  amounted  to  $150,- 
900,000.  *  Baltimore  has  not  quite  the  population  of 
Boston,  and  if  there  is  any  difference  in  the  wealth  of  the 
two  cities,  that  of  Boston  is  undoubtedly  the  greater ;  while 
the  Baltimore  taxes  applied  to  only  three  of  the  five  classes 
of  property  included  in  the  Boston  assessment.  Moreover, 
the  assessment  in  Baltimore  was  made  under  an  antiquated 
law.  The  Maryland  law  does  not  provide  for  annual 
reassessments  of  the  whole  city,  and  the  force  at  the  dis- 
posal of  the  assessing  department  is  so  small  that  a  com- 
plete annual  assessment  could  not  be  had,  even  if  the  law 
required  it.     Moreover,  dooming  is  very  rarely  employed. 


59 

and  practically  the  whole  assessment  is  based  upon  returns 
of  taxpayers.  That  under  such  circumstances  Baltimore 
should  assess  $150,000,000  of  the  specified  securities, 
while  Boston  assesses  but  $110,000,000  of  intangible  prop- 
erty of  all  descriptions,  is  a  fact  of  the  utmost  significance. 
It  shows  that  people  will  voluntarily  return  for  taxation 
at  a  reasonable  rate  far  more  property  than  the  most  arbi- 
trary  dooming  law  can  place  upon  the  assessment  list. 

If  we  compare  the  assessment  of  intangible  property 
with  the  assessment  of  real  property  in  the  two  cities,  the 
results  are  equally  striking.  In  1907  Boston  assessed 
$110,000,000  of  intangible  property  of  all  descriptions, 
while  the  assessed  valuation  of  real  estate  was  $1,070,- 
000,000,  the  former  class  of  property  amounting  to  about 
10  per  cent,  of  the  latter.  In  Baltimore  the  same  year  the 
valuation  of  real  property  was  $306,000,000,  while  the 
valuation  of  the  specified  classes  of  securities  was  $150,- 
900,000,  or  approximately  50  per  cent,  of  the  real  prop- 
erty. It  is  probable  that  in  Baltimore  the  assessed  value 
of  real  estate  forms  a  smaller  proportion  of  its  true  value 
than  would  be  found  to  be  the  case  in  Boston;  but,  even 
if  we  suppose  that  the  assessed  value  of  real  property  in 
Baltimore  should  be  increased  100  per  cent.,  in  order  to 
make  the  figTires  comparable  with  the  figures  for  Boston, 
—  a  highly  improbable  assumption,  —  the  comparison 
would  still  be  very  greatly  in  favor  of  the  former  city. 

The  testimony  of  the  most  competent  observers  is  highly 
favorable  to  the  Maryland  law.  Judge  Oscar  Leser  of  the 
Appeal  Tax  Court,  who  has  had  better  opportunities  than 
any  one  else  for  studying  the  subject,  gives  the  following 
testimony :  — 

Although  we  believe  that  the  proportion  of  the  entire  tax  re- 
ceived by  the  State  is  greater  under  our  system  than  it  ought  to 
be  .  .  .  the  new  law  has  produced  highly  beneficial  results.  It 
has  largely  taken  away  the  incentive  to  perjury  on  the  part  of 
the  taxpayer,  and  it  has  encouraged  the  investment  of  money  in 
taxable  securities,  while  at  the  same  time  a  substantial  revenue 
has  been  vouchsafed  both  city  and  State.  The  fixing  of  a 
uniform  rate  throughout  the  State  has  taken  away  the  former 


60 

inducement  to  the  owners  of  such  intangible  property  either  to 
remove  into  adjoining  counties  where  the  local  tax  was  less, 
or  to  fraudulently  claim  a  taxable  residence  outside  of  the  city 
limits.  It  can  be  readily  seen  that  the  moral  effect  of  such  a 
law  has  been  highly  beneficial.  In  an  indirect  way  it  has  stim- 
ulated honesty  in  other  matters  affecting  taxation,  because  the 
man  who  would  lie  or  cheat  in  regard  to  one  species  of  property  is 
very  likely  to  do  the  same  thing  in  regard  to  other  species.  It  is 
generally  admitted  and  recognized  here  that  the  bur(Jlen  thus 
exacted  from  security  owners  is  reasonable.  Hence,  public 
opinion  fully  supports  the  law,  and  frowns  upon  any  attempted 
violation  of  it. 

Judge  Leser  has  further  stated  to  members  of  the 
present  commission  that  the  officers  of  the  Appeal  Tax 
Court  feel  that  they  are  enforcing  a  reasonable  law,  which 
is  in  no  way  odious  and  has  the  support  of  all  right- 
minded  citizens,  —  a  statement  which  could  not  be  made 
by  any  board  of  assessors  outside  of  the  States  of  Penn- 
sylvania and  Maryland. 

The  mayor  of  Baltimore  has  recently  appointed  an  ad- 
visory committee  on  taxation,  which  has  made  a  careful 
study  of  the  revenue  system  of  the  city.  From  Prof. 
Jacob  H.  Hollander,  of  Johns  Hopkins  University,  a  mem- 
ber of  this  committee,  the  commission  has  recently  received 
the  following  testimony :  — 

Ten  years  ago  the  city  of  Baltimore,  through  fiscal  exigency 
rather  than  in  consequence  of  scientific  analysis,  was  supplied 
with  a  method  of  taxing  so-called  "  intangible  wealth,"  which  in 
the  decade  of  its  operation,  under  but  fairly  efficient  adminis- 
tration, has  placed  a  steadily  increasing  assessment  upon  the  tax 
books,  to  the  material  betterment  of  the  city  treasury,  to  the 
appreciable  relief  of  the  overtaxed  real  estate  owner,  to  the 
manifest  improvement  of  local  tax  morality,  and  to  the  lessening 
of  county  immigTation  for  tax  purposes.  While  the  results  thus 
obtained  have  been  absolutely  substantial  and  relatively  favorable, 
they  are  very  far  from  representing  maximum  possibilities.  Dur- 
ing the  decade  under  consideration  Baltimore  suffered  a  devastat- 
ing conflagration,  involving  the  destruction  of  many  millions  of 
tangible  property,  and  the  necessary  liquidation  and  conversion 
of   considerable   holdings   of   securities.       The   whole   system   of 


61 

capital  holding  was  disorganized,  and  only  during  the  last  two 
years  has  anything  like  equilibrium  returned.  Moreover,  the 
assessing  force,  although  a  substantial  improvement  over  the  older 
conditions,  leaves  much  to  be  desired,  both  on  the  score  of  num- 
bers and  expert  equipment.  The  whole  basis  of  securities  now 
upon  the  tax  books,  exclusive  of  the  original  listing,  represents 
little  more  than  the  spasmodic  efforts  of  an  inadequate  force 
working  upon  the  problem  at  hand,  under  intelligent  direction,  but 
without  systematic  plan  in  pursuit.  I  have  no  hesitation  in  saying 
that  not  only  are  better  results  attainable,  but,  more  than  this, 
that  any  conceivable  kind  of  tax  would  work  poorly  if  similarly 
handicapped  in  administration.  That  under  these  conditons  the 
results  have  been  so  favorable  confirms  the  fiscal  possibilities  of 
the  measure  at  its  best. 

The  outcome  of  the  commission's  investigations  is  sub- 
stantially this:  the  attempt  to  tax  money,  credits  and 
securities  at  the  same  rate  as  other  classes  of  property  has 
everywhere  and  always  proved  a  failure.  In  our  American 
States  the  result  has  been  that  the  assessment  of  intangible 
property  decreases  either  absolutely  or  relatively  as  wealth 
and  population  increase.  We  can  find  no  exception  to  this 
general  rule,  and  are  forced  to  the  conclusion  that  our 
present  laws  are  at  this  point  fundamentally  wrong.  Upon 
the  other  hand,  it  appears  that  two  States  have  met  with 
reasonable  success  in  administering  a  uniform  tax  of 
moderate  amount  upon  intangible  property;  and  the  con- 
clusion seems  inevitable  that  if  Massachusetts  is  to  con- 
tinue to  tax  this  class  of  property  she  should  adopt  a  plan 
similar  to  that  now  in  operation  in  Pennsylvania  and 
Maryland. 

Before  coming  to  a  final  conclusion,  the  commission  de- 
cided to  visit  Baltimore,  Harrisburg  and  Philadelphia,  in 
order  to  investigate  at  first  hand  the  working  of  the  laws 
above  described.  In  Baltimore  and  Philadelphia  personal 
interviews  were  had  with  the  officials  who  administer  the 
law,  and  at  Harrisburg  interviews  were  obtained  with  vari- 
ous State  officials.  ,In  all  three  cities  the  results  of  the 
inquiries  were  substantially  the  same.  The  commission 
found  that  methods  of  administration  were  in  general  less 


62 

effective  than  those  employed  in  Massachusetts,  and  that 
any  laws  which  could  be  successfully  administered  under 
such  conditions  would  be  even  more  successful  in  this 
State. 

The  commission  has  drawn  a  bill  which  combines  the 
best  features  of  the  Maryland  and  Pennsylvania  laws,  and 
has  added  other  provisions  designed  to  secure  greater 
efficiency  in  administration. 

The  bill  exempts  intangible  property  from  all  other 
taxation,  and  makes  it  liable  to  a  uniform  tax  of  3  mills 
on  each  dollar  of  the  fair  cash  value  ($3  per  $1,000). 

It  has  been  drawn  so  as  to  make  taxable  at  the  rate  of 
3  mills  no  property  now  exempt  from  taxation,  and  in 
general  makes  as  few  changes  as  possible  in  the  existing 
system.  It  imposes  no  new  burdens  upon  any  class  of 
property  or  business,  and  aims  solely  to  make  our  laws 
more  reasonable  and  effective. 

The  classes  of  property  included  within  the  provisions 
of  the  bill  are  money,  credits  and  securities  now  liable  to 
taxation.  All  other  kinds  of  personal  property  are  left 
taxable,  as  at  present,  at  the  full  local  rate.  The  moneyed 
capital  of  bankers  or  brokers  is  specifically  excluded  from 
the  property  taxable  at  the  rate  of  3  mills,  and  is  left  sub- 
ject to  taxation  at  the  full  local  rate,  because  any  other 
course  would  invalidate  the  present  bank  tax.  The  power 
to  tax  shares  of  national  banks  is  derived  from  a  federal 
statute,  which  provides  that  the  shares  shall  not  be  taxed 
at  a  rate  exceeding  that  levied  upon  other  moneyed  capi- 
tal; so  that  no  course  is  open  but  to  leave  the  moneyed 
capital  of  bankers  and  brokers  taxable  as  at  present. 

The  rate  of  the  tax  which  should  be  imposed  on  intangi- 
ble property  has  been  the  subject  of  careful  consideration. 
In  Pennsylvania,  as  already  stated,  the  rate  is  4  mills  ($4 
per  $1,000)  ;  in  Maryland  it  is  approximately  4.6  mills 
($4.60  per  $1,000).  But  these  rates  are  probably  too 
high  to  give  the  best  results,  and  this  opinion  is  confirmed 
by  what  the  commission  learned  during  its  visit  in  Balti- 
more and  Philadelphia.  We  believe  that  in  this  matter  we 
should  be  guided  by  the  experience  of  other  countries  in 


63 

taxing  the  income  from  this  class  of  property.  That  ex- 
perience shows  that  a  direct  tax  exceeding  5  or  6  per  cent, 
of  the  taxpayer's  income  is  regarded  as  a  heavy  burden, 
and  that  as  a  rate  approaches  the  figure  of  8  or  10  per 
cent,  it  becomes  unbearable  and  leads  to  evasion.    A  tax  of 

3  mills  upon  each  dollar  of  the  valuation  amounts  to  5  per 
cent,  of  the  income  from  a  security  that  yields  the  investor 
6  per  cent,  interest,  it  is  6  per  cent,  of  the  income  from 
an  investment  yielding  5  per  cent,  interest,  and  is  nearly 
8  per  cent,  of  the  income  from  an  investment  yielding 

4  per  cent,  interest.  This  is  as  high  a  rate  as  we  think 
that  Massachusetts  should  impose  upon  a  class  of  property 
the  assessment  of  vv^hich  requires  the  co-operation  and  the 
good  will  of  the  taxpayer. 

It  is  to  be  remembered  that  with  us  the  tax  will  be 
assessed  by  local  boards,  which  have  been  subject  hitherto 
to  no  central  control.  Even  with  such  supervision  as  the 
commission  recommends,  it  is  not  to  be  supposed  that  we 
can  be  more  successful  in  taxing  intangible  property  than 
European  governments  having  a  highly  trained  civil  ser- 
vice which  is  subject  to  strict  central  control.  Under  such 
conditions  our  tax  rate  should  be  less  rather  than  more 
than  the  rates  which  those  governments  impose  upon  in- 
comes; and  the  commission  is  confident  that  in  the  long 
run  a  tax  of  3  mills  will  produce  more  revenue  than  a 
tax  levied  at  such  rates  as  we  now  find  in  Maryland  and 
Pennsylvania. 

A  further  consideration  is  that  no  small  part  of  intangi- 
ble property  represents  tangible  property  which  has  already 
been  taxed  either  in  this  Commonwealth  or  elsewhere,  so 
that  to  some  extent  the  tax  of  3  mills  involves  double  taxa- 
tion. This  fact  obviously  affects  the  attitude  of  the  tax- 
payer, and  makes  it  all  the  more  desirable  that  our  pro- 
posed tax  should  not  be  too  high. 

It  has  been  suggested  to  the  commission  that  the  rate 
here  proposed  is  less  than  the  Commonwealth  now  imposes 
upon  the  deposits  of  savings  banks,  which  have  long  been 
treated  as  a  class  of  property  deserving  special  considera- 
tion.    It  is  true  that  the  nominal  rate  for  savings  deposits 

/  OF  THE     "^  X 


64 

is  5  mills,  but  this  is  not  the  actual  rate.  The  law  ex- 
empts from  taxation  that  part  of  the  deposits  of  savings 
banks  which  is  invested  in  mortgages  on  taxable  real  estate, 
and  the  banks  are  granted  an  abatement  of  part  of  the 
tax  on  bank  shares  owned  by  them.  The  result  is  that 
for  many  years  the  average  tax  upon  savings  deposits 
throughout  the  Commonwealth  has  been  almost  exactly 
2%  mills ;  so  that  the  rate  which  the  commission  proposes 
to  levy  upon  intangible  property  is  more  and  not  less  than 
the  actual  rate  paid  by  savings  banks. 

With  a  rate  of  3  mills,  we  believe  that  the  average  citi- 
zen of  Massachusetts  will  cheerfully  submit  to  taxation 
upon  intangible  property.  There  are  doubtless  in  every 
community  some  persons  who  will  try  to  evade  any  tax,' 
however  reasonable  it  may  be ;  but  we  cannot  believe  that 
they  represent  the  attitude  of  the  average  citizen.  It  is 
the  testimony  of  assessors  that  under  our  present  system 
most  men  will  allow  themselves  to  be  doomed  upon  what 
they  consider  a  reasonable  amount  of  property,  and  that 
they  will  not  seriously  complain  or  change  their  residence 
until  they  feel  that  they  are  paying  more  than  their  neigh- 
bors contribute.  The  experience  of  Pennsylvania  and 
Maryland  points  to  the  same  conclusion,  as  does  the  experi- 
ence of  those  European  countries  which  levy  reasonable 
taxes  upon  income.  !N'o  form  of  personal  taxation  can  be 
wholly  free  from  evasion ;  but  the  commission  believes  that 
a  reasonable  tax,  even  on  intangible  property,  can  be  suc- 
cessfully administered  in  Massachusetts.  With  a  fixed 
rate  of  3  mills,  no  man's  tax  will  be  larger  because  his 
neighbor  evades  taxation.  Widows  and  orphans  will  not 
be  compelled  to  contribute  one-third  or  one-half  of  their 
income.  Our  assessors  when  they  discover  taxable  prop- 
erty can  enforce  the  law  without  feeling  that  they  are 
imposing  an  odious  and  confiscatory  tax.  Public  senti- 
ment will  heartily  support  the  law,  and  tax-dodging  will 
become  unfashionable,  greatly  to  the  advantage  of  public 
and  private  morality. 

The  tax  proposed  by  the  commission  is  to  be  assessed 
to  the  owners  of  intangible  property  in  the  city  or  town 


65 

in  which  they  reside  on  the  first  day  of  May ;  and  the  rules 
of  assessment  and  collection,  so  far  as  practicable,  follow 
those  prescribed  by  chapters  12  and  13  of  the  Revised 
Laws.  At  some  points,  however,  it  has  been  necessary  to 
change  the  methods  of  administration. 

The  most  important  change  is  that  made  by  sections  22, 
23  and  24  of  the  bill  herewith  submitted.  The  commission 
proposes  that  hereafter  Massachusetts  corporations,  as  well 
as  counties,  cities  and  towns,  shall  be  required,  when  pay- 
ing interest  upon  their  bonds,  to  deduct  the  tax  of  3  mills. 
This  is  the  practice  in  Pennsylvania,  as  well  as  in  many 
countries  of  Europe.  The  tax  can  be  deducted,  of  course, 
only  from  interest  paid  on  bonds  owned  by  residents  of 
the  Commonwealth;  and  the  commission  suggests  practi- 
cable methods  of  preventing  evasion  and  meeting  the  diffi- 
culties that  arise  in  the  case  of  coupon  bonds.  We  believe 
that  the  legality  of  making  the  corporation  the  agent  in 
collecting  the  tax  has  been  fully  established.  It  has  been 
objected  that  by  such  deduction  a  corporation  would  violate 
the  terms  of  its  contract  with  the  bondholders;  but  we 
believe  that  the  only  right  affected  is  the  right  of  the 
bondholder  to  dodge  his  taxes,  and  that  this  right  will  not 
be  considered  peculiarly  sacred  by  the  courts.  From  the 
point  of  view  of  the  bondholder  who  intends  to  pay  his 
tax,  this  method  of  collection  has  obvious  advantages,  since 
it  makes  it  unnecessary  for  him  to  disclose  to  the  assessor 
his  holdings  of  corporation,  county  or  municipal  bonds. 
It  tends,  therefore,  to  make  the  tax  less  inquisitorial  in 
character,  while  it  safeguards  the  interests  of  the  public 
treasury. 

The  bill  submitted  by  the  commission  requires  a  return 
for  taxation  of  all  property  liable  to  the  tax  of  3  mills, 
except  corporation,  county  and  municipal  bonds,  upon 
which  the  tax  has  been  deducted,  as  explained  above.  It 
provides  that  this  return  shall  be  made  upon  a  separate 
form,  which  shall  be  entirely  distinct  from  the  forms  pre- 
pared for  the  return  of  other  classes  of  property.  It  fur- 
ther provides  that  the  taxpayer  shall  state  only  the  total 
amount  of  his  taxable  property  of  each  of  the  five  classes 


66 

enumerated  in  section  4  of  the  bill;  but  assessors  will  be 
permitted,  as  at  present,  to  ask  any  necessary  and  reason- 
able questions  concerning  details.  These  provisions  make 
it  easy  for  the  citizen  to  make  a  full  return  of  his  intangi- 
ble property  with  as  little  inquisition  as  possible  into 
his  private  affairs.  If  the  return  is  made  under  oath,  and 
the  assessor  is  allowed  to  make  necessary  inquiries  concern- 
ing details,  the  interests  x>i  the  community  will  be  suffi- 
ciently safeguarded  and  the  law  will  be  administered  with 
much  greater  ease. 

While  it  is  proposed  to  make  it  easier  for  a  citizen  to 
bring  in  a  list  of  his  intangible  property,  the  commission 
proposes  to  strengthen  the  law  concerning  persons  who  fail 
to  bring  in  such  lists.  Section  7  of  our  bill  provides 
for  a  penalty  of  50  per  cent,  for  failure  to  bring  in  a  list 
of  property  subject  to  the  tax  of  3  mills;  section  9  pro- 
vides that  a  person  who  changes  his  residence  shall  not 
have  his  assessment  reduced  until  he  makes  the  required 
return;  section  18  provides  that  all  information  contained 
in  returns  made  under  the  inheritaace  tax  law  shall  be 
transmitted  by  the  Tax  Commissioner  to  the  assessors  of 
the  various  cities  or  towns;  section  19  provides  effective 
measures  for  securing  the  full  return  of  all  property  held 
in  the  Commonwealth  by  executors,  administrators  and 
trustees;  and,  finally,  the  Tax  Commissioner  and  his 
deputy  or  assistants  are  authorized  to  list  for  taxation  in 
any  city  or  town  property  not  listed  by  the  local  assessors. 
If  the  tax  is  made  reasonable  in  amount  and  uniform 
throughout  the  State,  there  should  be  a  strict  and  uniform 
enforcement  of  the  law.  If  this  can  be  secured,  the  effect 
of  the  bill  wdll  be  ultimately  to  increase  the  contribution 
which  intangible  property  makes  to  the  support  of  public 
charges. 

Whsit  the  financial  results  of  the  measure  will  be  it  is 
impossible  to  predict,  since  no  one  knows  how  much  taxable 
property  of  an  intangible  character  there  is  in  the  Com- 
monwealth. The  commission  has  estimated  that  about  45 
per  cent,  of  the  assessment  of  personal  property,  exclusive 
of  resident  bank  stock,  consists  of  intangible  property,  and 


67 

that  in  1906  the  amount  assessed  approximated  $317,000,- 
000.  If  this  property  paid  the  same  average  tax  as  the 
general  mass  of  property  subject  to  local  taxation,  it  would 
have  paid  about  $5,380,000  of  the  $11,865,000  collected 
from  personal  property  in  1906 ;  but  as  a  matter  of  fact 
it  paid  much  less  than  the  average  tax.  Not  less  than 
$110,000,000  of  intangible  property  was  assessed  in  Bos- 
ton, where  the  tax  rate  was  $16  per  $1,000,  as  compared 
with  an  average  tax  of  over  $17  per  $1,000  throughout  the 
Commonwealth.  Besides  this,  not  less  than  $80,000,000 
and  perhaps  $90,000,000  of  intangible  property  was  lo- 
cated in  31  towns  in  which  the  average  rate  of  taxation  was 
about  $12,  or  one-third  less  than  the  average  for  the  Com- 
monwealth. It  is  evident,  therefore,  that,  although  in- 
tangible property  may  have  constituted  45  per  cent,  of  the 
total  personal  property  subject  to  local  taxation,  it  contrib- 
uted much  less  than  45  per  cent,  of  the  taxes  collected 
upon  personal  estates.  We  may  safely  assume  that  in- 
tangible property  did  not  contribute  more  than  40  per 
cent  of  the  $11,865,000  collected  from  personal  property 
in  1906,  and  may  have  paid  approximately  $4,500,000. 
Whether  the  law  proposed  by  the  commission  would  yield 
more  or  less  than  this  sum  depends  upon  the  amount  of 
property  that  would  be  disclosed  for  taxation  at  the  3-mill 
rate. 

In  Baltimore  the  lesult  of  the  law  of  1896  was  an  in- 
crease of  the  assessment  from  $6,000,000  to  $55,000,000 
in  the  first  year.  It  would  be  unsafe  to  predict  that  the 
immediate  result  would  be  equally  striking  in  Massa- 
chusetts, because  with  us  the  taxation  of  intangible  prop- 
erty has  not  been  such  a  complete  farce  as  it  was  in  Mary- 
land prior  to  1896;  but  there  can  be  no  doubt  that  there 
would  be  a  large  increase  in  the  assessment  of  intangible 
property,  particularly  under  the  stringent  provisions  which 
the  commission  has  suggested  for  collecting  the  tax  on 
corporation  and  municipal  bonds,  and  from  executors,  ad- 
ministrators and  trustees.  In  other  cases  a  little  time 
might  be  required  for  taxpayers  and  assessors  to  get  accus- 
tomed to  the  new  regime ;   but  it  is  not  to  be  doubted  that. 


68 

with  better  machinery  of  assessment  than  exists  in  Penn- 
sylvania and  Maryland,  we  should  see  a  rapid  increase  in 
the  amount  of  property  disclosed  for  taxation.  If  it  is 
unsafe  to  predict  that  the  assessment  of  intangible  property 
would  increase  800  per  cent,  in  a  single  year,  as  it  did  in 
Baltimore  in  1897,  it  is  safe  to  predict  that  in  ten  years 
we  should  see  some  such  increase  as  occurred  in  Baltimore 
subsequent  to  the  year  just  mentioned.  In  that  city,  even 
after  the  initial  impulse  imparted  by  the  law  of  1896,  the 
assessment  of  securities  advanced  in  ten  years  from  $55,- 
000,000  to  over  $150,000,000.  With  the  improved  ma- 
chinery proposed,  we  believe  that,  although  the  immediate 
result  may  be  less  striking,  the  ultimate  outcome  will  be 
even  better  than  that  of  the  Maryland  law.  Massachusetts 
is  a  wealthier  State  than  Maryland,  and  has  a  larger 
amount  of  taxable  personal  property.  Our  people  are  not 
less  willing  than  the  people  of  Baltimore  to  make  reason- 
able contributions  to  the  support  of  public  charges.  With 
improved  methods  of  administering  the  law,  the  result  of 
a  moderate  tax  levied  at  a  uniform  rate  on  intangible 
property  could  not  be  less  successful  here  than  in  our 
sister  State. 

In  judging  of  the  immediate  effect  of  the  proposed  law, 
it  should  not  be  forgotten  that  the  moneyed  capital  of 
bankers  and  brokers  is  left  taxable  at  the  full  local  rate. 
This  property  must  have  formed  not  less  than  8  or  10  per 
cent,  of  the  whole  amount  of  intangible  property  assessed 
in  1906,  and  the  revenue  from  this  source  would  be  in  no. 
wise  affected  by  the  measure  proposed.  We  are  dealing, 
therefore,  with  property  which  contributed  about  $4,000,- 
000  of  the  $56,000,000  of  taxes  levied  in  1906  upon  the 
general  mass  of  property  in  the  Commonwealth. 

It  is  possible  to  make  a  rough  estimate  of  the  probable 
yield  of  the  taxes  which  would  be  deducted  by  corporations 
and  by  counties  or  municipalities  from  the  interest  on  their, 
outstanding  bonds.  In  1906  the  aggregate  indebtedness 
of  public-service  corporations  organized  in  Massachusetts 
was  $231,000,000,  and  the  interest-bearing  debt  of  munic- 
ipalities in  the  Commonwealth,  exclusive  of  bonds  held 


69 

in  sinking  funds,  was  over  $150,000,000.  These  two  items 
amount  to  $381,000,000 ;  but  it  is  necessary  to  make  large 
deductions  for  bonds  owned  outside  the  Commonwealth, 
held  by  corporations  not  liable  to  taxation,  and  held  by  the 
Commonwealth  in  its  various  funds.  When  such  deduc- 
tions are  made,  it  appears  that  not  less  than  $150,000,000, 
and  perhaps  as  much  as  $170,000,000,  of  the  bonds  of 
Massachusetts  corporations  and  municipalities  are  owned 
by  residents  of  the  Commonwealth  liable  to  taxation.  At 
the  rate  of  3  mills  it  may  be  estimated  that  the  law  pro- 
posed by  the  commission  would  yield  a  revenue  of  not  less 
than  $450,000  or  more  than  $500,000  from  this  source. 
At  the  present  time  it  is  believed  that  very  few  corporation 
bonds,  and  practically  no  municipal  bonds,  are  returned  for 
taxation  in  the  Commonwealth;  so  that  the  revenue  esti- 
mated above  would  be  secured  from  property  which  now 
contributes  substantially  nothing. 

In  this  connection  a  word  should  be  said  concerning  the 
taxation  of  municipal  bonds.  The  commission  has  else- 
where recommended  that  the  Legislature  exempt  future 
issues  of  municipal  bonds  from  taxation.  If  this  is  done, 
the  bill  would  apply  only  to  outstanding  issues,  which  no 
one  proposes  to  exempt  from  taxation,  and  the  revenue  de- 
rived from  the  3-mill  tax  upon  municipal  bonds  would 
gradually  disappear  as  these  issues  mature.  Any  loss  at 
this  point  would  be  more  than  made  up  by  the  increase  in 
the  yield  of  the  tax  from  the  bonds  of  Massachusetts  cor- 
porations. With  the  tax  reduced  to  3  mills,  a  larger  market 
would  be  created  in  Massachusetts  for  the  bonds  of  domes- 
tic corporations,  and  the  revenue  would  steadily  increase. 

In  drafting  the  bill,  the  commission  found  some  diffi- 
culty in  deciding  whether  the  tax  on  intangible  property 
should  be  left  as  a  local  tax  or  should  be  made  a  State  tax, 
the  proceeds  of  which  would  be  distributed  in  some  equita- 
ble proportion  among  the  several  cities  and  towns.  In 
favor  of  the  proposal  that  the  tax  should  be  a  State  tax, 
it  was  urged  that  intangible  property  has  been  concen- 
trated in  a  small  number  of  towns  largely  by  the  operation 
of  our  tax  laws,  and  that  it  is  not  just  that  these  localities 


70 

should  enjoy  tlie  whole  revenue  from  property  now  found 
within  their  borders.  On  the  other  hand,  it  was  argued 
that  the  effect  of  a  uniform  rate  coupled  with  a  uniform 
enforcement  of  the  law  would  be  to  distribute  this  property 
in  a  more  equitable  manner,  so  that  matters  would  grad- 
ally  right  themselves,  even  if  the  tax  were  made  a  local 
tax,  as  at  present.  The  commission  inclines  to  the  latter 
view,  but  if  experience  shows  that  the  uniform  rate  does 
not  go  to  the  root  of  the  difficulty,  it  will  be  possible  for 
the  Legislature  to  take  such  further  action  as  the  situation 
may  require. 

The  commission  finds  that  fear  is  entertained  that  the 
proposed  change  in  the  tax  on  intangible  property  will 
affect  the  market  for  shares  in  the  capital  stock  of  domestic 
corporations.  Such  shares  are  exempt  from  taxation  in 
the  hands  of  the  investor,  since  the  property  they  represent 
is  fully  taxed  under  our  laws  for  taxing  corporate  fran- 
chises. This  fact  has  induced  trustees  and  other  investors 
to  purchase  large  amounts  of  the  shares  of  our  public- 
service  corporations,  in  preference  to  other  securities  liable 
to  local  taxation.  The  commission  believes  that  this  fear 
is  not  without  justification,  although  opinions  differ  con- 
cerning the  extent  to  which  investments  would  be  affected 
by  the  measure  proposed.  If  the  advantage  in  the  holding 
of  shares  of  domestic  corporations  over  the  holding  of 
bonds  or  the  shares  of  foreign  corporations  is  materially 
lessened,  the  result  might  be  to  make  it  difficult  for  com- 
panies to  raise  the  money  necessary  for  the  proper  develop- 
ment of  our  transportation  facilities  and  other  public 
utilities.  The  obvious  remedy  for  such  a  difficulty  is  to 
impose  less  severe  conditions  on  the  issue  of  new  stock  by 
public-service  corporations,  so  that  shares  may  be  issued 
upon  terms  that  will  attract  purchasers.  Massachusetts 
investors  have  a  natural  preference  for  the  securities  of 
our  own  corporations,  and  this  preference  would  be  suffi- 
cient to  insure  such  companies  all  needed  capital,  if  stock 
could  be  issued  upon  equally  favorable  terms.  This  is  a 
question  which,  in  the  judgment  of  the  commission,  will 
demand  consideration  before  long,  irrespective  of  changes 


71 

in  the  tax  laws  of  the  Cominonwealth.  It  is,  however, 
intimately  connected  with  the  question  of  taxation;  and 
we  are  of  the  opinion  that,  if  the  3-mill  tax  is  to  become 
a  law,  such  changes  should  at  the  same  time  be  made  in 
the  law  relating  to  public-service  corporations  as  will  per- 
mit the  issue  of  capital  stock  upon  terms  that  will  en- 
courage investment  in  domestic  transportation  companies 
and  other  public  utilities,  notwithstanding  the  proposed 
reduction  in  the  tax  on  foreign  securities.  We  therefore 
recommend  that  this  question  be  considered  by  the  General 
Court,  together  with  the  plan  for  taxing  intangible  prop- 
erty. 

The  immediate  duty  of  the  commission,  however,  is  to 
recommend  desirable  changes  in  the  tax  laws  of  the  Com- 
monwealth ;  and  we  recommend  the  taxation  of  intangible 
property  at  a  uniform  rate  of  3  mills  as  the  most  practi- 
cable method  of  curing  the  chief  evils  in  the  present  sys- 
tem. If  this  class  of  property  is  to  be  taxed  at  all,  the 
rate  must  be  uniform,  and  must  be  reduced  to  a  moderate 
and  reasonable  figure ;  otherwise,  there  can  be  no  remedy 
for  the  unsatisfactory  conditions  which  are  universally 
admitted  to  exist. 

It  has  been  suggested  to  the  commission  that  there  may 
be  constitutional  objections  to  the  proposed  reduction  of 
the  tax  upon  intangible  property  to  the  rate  of  3  mills. 
The  Constitution  of  the  Commonwealth  provides  that 
"  assessments,  rates  and  taxes  "  must  be  "  proportional ;  " 
and  the  Supreme  Court  has  held  in  a  number  of  cases  that 
a  tax,  in  order  to  be  proportional,  must  be  levied  at  the 
same  rate  upon  all  classes  of  property.  But  the  Legisla- 
ture has  power  to  grant  reasonable  exemptions  from  taxa- 
tion, and  it  is  not  improbable  that  it  has  power  to  exempt 
intangible  property.  In  any  case  where  it  has  power  to 
grant  total  exemption,  it  undoubtedly  has  the  power  to 
exempt  in  part;  and  our  tax  laws  have  always  contained 
provisions  by  which  some  classes  of  property  have  been 
taxed  at  a  lower  rate  than  others.  This  is  true  to-day  of 
the  income  from  annuities,  the  interest  which  any  indi- 
vidual or  partnership  may  have  in  ships  or  vessels  engaged 


72    . 

in  the  foreign  carrying  trade,  and  of  incomes  from  pro- 
fessions, trades  or  employments.  There  is  a  further  proba- 
bility that,  if  the  question  should  be  directly  presented, 
the  court  would  hold  that  the  Legislature  may  classify 
property  in  a  reasonable  manner,  provided  that  the  tax  is 
uniform  upon  all  property  of  the  same  class.  This  con- 
clusion is  supported  by  the  recent  trend  of  judicial  deci- 
sions in  other  jurisdictions,  and  particularly  by  the 
decisions  of  the  Supreme  Court  of  the  United  States. 

But,  while  there  is  reason  for  thinking  that  the  proposed 
law  is  constitutional,  the  commission  believes  that  it  should 
not  be  enacted  until  the  Legislature  secures  the  opinion  of 
the  Supreme  Judicial  Court,  as  it  has  authority  to  do. 
Serious  complications  might  arise  if  the  law  should  be 
enacted  and  subsequently  declared  invalid ;  and  we  believe 
that  the  only  safe  course  is  to  ascertain  the  opinion  of  the 
court  in  advance. 

If  the  court  should  decide  that  the  proposed  law  is  un- 
constitutional, the  commission  recommends  that  the  Con- 
stitution of  the  Commonwealth  be  amended  in  such  a  way 
as  to  secure  to  the  Legislature  the  right  to  classify  property 
in  a  reasonable  manner  for  the  purposes  of  taxation.  This 
is  a  course  which  not  a  few  States  have  already  taken,  in 
order  to  free  themselves  from  antiquated  systems  of  taxa- 
tion; and  in  at  least  three  States  the  question  is  now 
before  the  people  for  consideration.  At  a  recent  confer- 
ence held  at  Columbus,  O.,  in  which  thirty-four  States, 
including  our  own,  were  represented,  the  following  resolu- 
tion was  unanimously  adopted :  — 

Whereas^  The  greatest  inequalities  have  arisen  from  laws  de- 
signed to  tax  all  the  widely  differing  classes  of  property  in  the 
same  way,  and  such  laws  have  been  ineffective  in  the  production 
of  revenue;  and  whereas,  the  appropriate  taxation  of  various 
forms  of  property  is  rendered  impossible  by  the  restrictions  upon 
the  taxing  power  contamed  in  the  constitutions  of  many  of  the 
States ; 

Resolved,  That  all  State  constitutions  requiring  the  same  taxa- 
tion of  all  property,  or  otherwise  imposing  restraints  upon  the 
reasonable  classification  of  property,  should  be  amended  by  the 
repeal  of  such  restrictive  provisions. 


73 

If  it  should  be  found  that  Massachusetts  is  bound  to 
an  antiquated  system  of  taxation,  which  has  never  proved 
effective  in  reaching  intangible  property  and  has  been  pro- 
ductive of  v^idespread  injustice  and  demoralization,  the 
Constitution  of  the  Commonwealth  cannot  too  soon  be 
amended. 

VI.        SUPEBVISION     OF     THE    ASSESSMENT     OF     PrOPEETY 

FOR   Taxation. 

In  its  investigations  the  commission  has  been  much  im- 
pressed with  the  need  of  greater  uniformity  in  methods  of 
assessing  property  for  taxation  throughout  the  Common- 
wealth. The  average  board  of  assessors  endeavors  to  per- 
form its  duties  with  fidelity  and  in  compliance  with  law, 
but  we  find  that  there  is  great  diversity  of  practice,  which 
leads  to  many  undesirable  results.  Real  property  is  fre- 
quently undervalued ;  and  this  fact,  despite  the  best  efforts 
of  the  Tax  Commissioner,  produces  inequality  in  the  dis- 
tribution of  the  State  tax.  Machinery  and  merchandise 
are  assessed  by  no  uniform  rules,  while  in  the  taxation  of 
intangible  property  the  situation  is  little  short  of  chaotic. 

The  commission  of  1874,  recognizing  this  evil,  recom- 
mended that  the  Commonwealth  should  have  an  agent  upon 
every  board  of  assessors;  and  at  various  times  since  then 
proposals  have  been  made  for  State  supervision  of  the 
assessment  of  property  for  taxation.  The  Tax  Commis- 
sioner now  has  an  assistant  whose  duty  it  is  to  visit  cities 
and  towns,  inspect  the  work  of  the  assessors,  and  advise 
local  boards  in  regard  to  their  duties  under  the  law.  But 
one  man  cannot  do  all  the  work  that  is  requisite,  and  he 
is  not  clothed  with  authority  to  enforce  compliance  with 
the  law. 

The  commission,  therefore,  recognizing  that  no  system 
of  taxation  can  be  eft'ective  unless  the  administration  and 
enforcement  of  the  law  are  made  uniform  throughout  the 
Commonwealth,  recommends  a  measure  designed  to  ex- 
tend the  supervision  now  exercised  by  the  State  over  the 
assessment  of  property. 

Objection  may  be  raised  to  any  proposal  to  extend  State 


74 

control  of  matters  now  entrusted  to  local  authorities;  but 
in  this  connection  it  should  be  pointed  out  that  we  are 
at  the  same  time  submitting  a  bill  to  provide  for  a  uni- 
form tax  at  the  rate  of  3  mills  upon  intangible  property. 
We  believe  that  this  measure  will  remove  all  reasonable 
ground  of  objection  to  the  proposal  for  State  supervision 
of  the  assessment  of  property. 

We  recommend  that  the  -Tax  Commissioner  shall  appoint 
twelve  supervisors  of  assessors,  who  shall  perform  the 
duties  now  prescribed  by  section  5  of  chapter  14  of  the 
Eevised  Laws;  and  shall  have  certain  further  powers 
which  seem  necessary  in  order  to  secure  uniformity  in  the 
assessment  of  property  and  strict  compliance  with  the  law. 
Chief  among  these  additional  powers  is  that  of  reviewing 
the  valuation  of  all  property  assessed  for  taxation.  It  is 
not  the  expectation  of  the  commission  that  such  power  will 
need  to  be  exercised  in  any  large  number  of  cases,  since 
the  mere  fact  that  it  exists  is  likely  to  remove  occasion  for 
exercising  it;  but  we  believe  it  to  be  a  necessary  part  of 
any  successful  scheme  of  State  supervision.  The  bill  sub- 
mitted provides,  furthermore,  that  all  information  coming 
to  the  Tax  Commissioner's  office  concerning  property  taxa- 
ble in  the  Commonwealth  shall  be  distributed  among  local 
boards  of  assessors,  thereby  saving  such  boards  considerable 
trouble  and  expense. 

In  the  bill  providing  for  a  uniform  tax  on  intangible 
property,  section  17  gives  the  Tax  Commissioner  authority 
to  list  for  taxation  any  such  property  omitted  by  the  local 
assessors,  and  for  that  purpose  to  appoint  such  assistants 
as  are  necessary;  but  if  the  bill  here  proposed  for  State 
supervision  is  adopted,  then  that  section  of  the  bill  for 
taxing  intangible  property  would  be  unnecessary. 

VII.  The  Compensation  of  Assessoks. 
Another  matter  worthy  of  the  attention  of  the  Legisla- 
ture is  the  compensation  of  assessors.  Section  99  of  chap- 
ter 12  of  the  Revised  Laws  provides  that:  "  Each  assessor 
shall  be  paid  by  his  city  or  town  two  dollars  and  fifty  cents 
a  day  for  every  whole  day  in  which  he  is  employed  in  that 


75 

service,  and  such  additional  compensation  as  the  city  or 
town  shall  allow."  This  minimum  wage  of  $2.50  a  day- 
was  established  in  1873;  previous  to  that  time  it  had 
been  $1.50.  The  intent  of  the  law  evidently  was  to 
provide  that  assessors  should  receive  not  less  than  the  wages 
of  a  skilled  mechanic;  and  with  the  prevailing  rates  of 
wages  in  1873  the  statute  probably  had  that  effect.  Since 
that  time  general  standards  of  wages  have  advanced,  so 
that  the  stated  wage  of  $2.50  is  to-day  nearer  the  wage 
of  a  common  laborer  than  that  of  a  skilled  workman  in 
ordinary  occupations.  Towns  and  municipalities  have 
steadily  increased  the  wages  paid  for  unskilled  labor,  but 
some  of  them  pay  assessors  nothing  more  than  the  mini- 
mum compensation  which  the  law  prescribes.  The  com- 
mission believes  that  the  State  cannot  afford  to  have  work 
requiring  skill  and  experience  performed  by  men  who  may 
receive  but  $2.50  per  day,  and  recommends  that  the  mini- 
mum compensation  of  assessors  be  advanced  to  $3.50  per 
day. 

VIII.  Exemption  of  County  and  Municipal  Bonds 
FEOM  Taxation. 

The  exemption  from  taxation  of  the  bonds  of  the  Com- 
monwealth has  met  with  general  approval,  and  has  in- 
creased the  demand  for  such  securities  to  such  an  extent 
as,  in  the  opinion  of  the  Treasurer  and  Receiver-General, 
to  reduce  the  interest  on  the  same  nearly  one-quarter  of 
one  per  cent.  This  successful  experiment  has  resulted  in 
a  very  general  demand  for  similar  exemption  of  the  bonds 
and  notes  of  counties,  cities  and  towns. 

Petitions  signed  by  the  mayors,  treasurers  and  selectmen 
of  various  cities  and  towns  in  the  State,  requesting  the 
commission  to  recommend  such  exemption,  have  been  re- 
ceived, and  are  now  on  file ;  and  at  a  public  hearing  given 
on  that  subject  strong  arguments  were  presented  in  favor 
of  such  a  recommendation. 

The  fact  that  the  city  of  Boston  was  unable  to  sell  its 
bouds  in  large  numbers  was  cited  as  evidence  that,  although 
people  were  very  willing  to  invest  in  such  securities,  they 


76 


could  not  do  so  if  they  were  called  upon  to  pay  a  tax  of 
$16  on  every  $1,000  bond.  It  was  also  shown  to  the 
commission  that  in  none  of  our  cities  and  towns  are  these 
securities  taxed  to  any  appreciable  extent. 

The  commission  is  satisfied  that  the  time  is  opportune 
to  exempt  this  class  of  securities  from  all  taxation;  and 
therefore  recommends  the  passage  of  a  law  to  that  effect, 
and  suggests  the  accompanying  bill. 

IX.  Municipal  Taxation  and  Finance, 
The  resolve  authorizing  the  appointment  of  the  com- 
mission provided  that  it  should  investigate  "  the  whole 
subject  of  taxation  in  this  Commonwealth,"  including 
^^  municipal  taxes."  Hearings  have  been  given  upon 
questions  of  municipal  taxation  and  finance;  but  it  has 
been  impossible,  in  the  time  at  our  disposal,  to  give  much 
attention  to  those  subjects.  This  the  commission  regrets, 
because  such  study  as  it  has  been  able  to  make  shows  that 
the  subject  deserves  most  careful  consideration.  We  find 
that  during  the  last  sixteen  years  county,  city  and  town 
taxes  have  increased  80  per  cent.,  while  the  net  indebted- 
ness of  cities  and  towns  has  increased  over  110  per  cent. 
The  statistics  are  so  striking  that  they  are  presented 
here : — 


Table  shoiving  Local  Debts  and  Taxes  in  Selected  Years. 


Year. 

Net  Indebtedness. 

Local  Taxes. 

1871,       

1874,       

1880,      

1890,      

1900,      

1906 

$39,400,000 

64,900,000 

68,500,000 

70,700,000 

1.31,000,000 

150,900,000 

$19,600,000 
26,700,000 
22,800,000 
29,800,000 
46,400,000 
54,400,000 

It  will  be  observed  that  from  1871  to  1874  the  increase 
of  local  taxes  and  indebtedness  was  very  rapid,  and  that 
during  the  next  six  years  there  was  a  period  of  retrench- 
ment, during  which  the  burden  of  taxation  was  reduced, 
while  the  net  indebtedness   remained   almost   stationary. 


77 

From  1880  to  1890  there  was  a  steady  increase  of  local 
taxes,  amounting  to  about  30  per  cent.,  but  the  net  in- 
debtedness continued  stationary.  During  the  last  sixteen 
years  both  debts  and  taxes  have  increased  at  unprecedented 
figures,  and  there  seems  to  be  every  reason  for  investigation 
of  the  causes  which  have  brought  this  about. 

The  power  of  municipalities  to  incur  debt  has  for  many 
years  been  limited  by  statute,  and  in  a  similar  manner 
restrictions  have  been  placed  upon  the  rate  of  taxation  that 
may  be  levied  for  local  purposes.  The  commission  finds 
that  serious  doubt  is  entertained  concerning  the  effect  of 
these  restrictions. 

The  wisdom  of  limiting  the  power  of  municipalities  to 
incur  debt  is  not  often  questioned,  but  we  find  that  the 
Legislature  has  in  so  many  cases  authorized  municipalities 
to  borrow  money  in  excess  of  the  statutory  limitation  that 
the  restraint  has  not  proved  as  effective  as  could  be  desired. 
It  has  been  suggested,  therefore,  that  it  may  be  wise  to 
amend  the  Constitution  of  the  Commonwealth  in  such  a 
way  as  to  make  it  impossible  for  municipalities,  with  or 
without  the  consent  of  the  Legislature,  to  borrow  money 
in  excess  of  a  certain  percentage  of  the  assessed  value  of 
property.  We  have  been  unable  to  give  this  question  suffi- 
cient study  to  justify  us  in  making  any  recommendation, 
but  we  find  in  the  statistics  of  municipal  indebtedness 
above  presented  ample  ground  for  believing  that  the  pres- 
ent restrictions  are  insufficient,  and  that  there  is  need  of 
a  thorough  investigation  of  the  subject. 

The  wisdom  of  the  present  restrictions  upon  the  rates 
of  municipal  taxation  is  also  open  to  question.  It  is 
thought  by  many  that  it  is  unwise  to  impose  any  limitation 
upon  local  tax  rates,  because  it  is  believed  that  municipal 
extravagance,  when  clearly  reflected  in  increased  taxes 
upon  property,  tends  to  cure  itself  by  obliging  taxpayers 
to  take  an  intelligent  interest  in  municipal  affairs.  How- 
ever this  may  be,  it  is  certain  that  the  maximum  rates 
authorized  by  the  present  law  are  so  low  that  not  a  few 
cities  are  virtually  compelled  to  borrow  money  for  current 
expenses.     Here,  again,  the  commission  is  unable  to  make 


78 

a  specific  recommendation,  but  we  believe  that  a  thorough 
investigation  should  be  made  of  the  working  of  the  present 
limitation  upon  municipal  tax  rates.  We  therefore  recom- 
mend that  the  General  Court  give  this  matter  careful  con- 
sideration. 

X.     Tax  on  Teansfees  of  Stock. 

The  attention  of  the  commission  has  been  called  to  the 
advisability  of  introducing  in  this  Commonwealth  a  tax 
on  transfers  of  stock.  In  1905  such  a  tax  was  established 
in  New  York,  and  that  State  is  now  deriving  a  revenue 
of  several  million  dollars  annually  from  this  source.  In 
Massachusetts  it  is  estimated  that  a  tax  on  transfers  would 
yield  approximately  $250,000. 

After  careful  consideration,  the  commission  has  reached 
the  conclusion  that  Massachusetts  ought  not  necessarily  to 
follow  the  example  of  New  York.  The  transactions 
reached  by  such  a  tax  are  concentrated  in  a  few  cities 
which  carry  on  the  financial  business  of  the  United  States ; 
and,  if  the  States  in  which  those  cities  are  located  tax  trans- 
fers of  stock,  they  are  virtually  taxing  the  business  of  the 
entire  country,  as  New  York  is  now  doing.  No  argument 
seems  needed  to  show  that  such  a  situation  would  be  most 
unjust  and  unfortunate. 

The  commission  is  further  of  the  opinion  that  in  ordi- 
nary times  it  is  unwise  to  place  a  tax  upon  commercial  or 
financial  transactions.  It  has  always  been  a  tradition  of 
American  finance  that  stamp  taxes  should  be  reserved  for 
use  in  time  of  war  or  other  fiscal  emergency;  and  the 
commission  believes  that  this  policy  is  inherently  sound, 
and  fully  justified  by  its  results.  Speculation  on  the  stock 
exchanges  undoubtedly  has  its  undesirable  features;  but 
it  has  also  the  legitimate  and  extremely  important  function 
of  establishing  a  broad  and  comparatively  stable  market 
for  securities,  without  which  modern  industry  would  be 
brought  to  a  standstill.  In  performing  this  function  the 
exchanges  should  not  be  hampered  by  a  form  of  taxation 
inconvenient  in  its  operation,  unequal  in  its  incidence,  and 
opposed  to  American  traditions  of  commercial  freedom. 


79 


XI.  Taxation  of  the  Property  of  Educational 
Institutions. 
The  commission  has  given  hearings  upon  the  subject 
of  exempting  from  taxation  the  property  of  educational 
institutions.  This  question  has  been  carefully  considered 
by  previous  commissions,  particularly  the  Joint  Special 
Committee  of  1906 ;  and  the  present  commission  has  come 
to  the  same  conclusions  as  its  predecessors. 

There  seems  to  be  nothing  in  the  financial  condition  or 
prospects  of  the  college  cities  and  towns  v^hich  calls  for 
a  change  in  the  established  policy  of  the  Commonwealth; 
and  it  is,  upon  all  accounts,  undesirable  to  impose  new 
burdens  upon  our  educational  institutions.  The  commis- 
sion recommends,  therefore,  that  the  law  relating  to  this 
subject  remain  unchanged. 

XII.  Codification  and  Kevision  of  the  Laws  re- 
latino    TO    Taxation. 

The  resolve  under  which  the  commission  was  appointed 
provided  that  it  should  codify,  revise  and  amend  the  laws 
relating  to  taxation. 

Xo  attempt  has  been  made  to  amend  the  laws  of  taxa- 
tion in  this  codification,  but  in  a  few  instances,  where 
changes  have  seemed  necessary  to  bring  the  laws  into  har- 
mony, or  where  a  palpable  error  has  crept  into  the  statutes, 
we  have  called  attention  to  the  facts  by  footnotes,  and  sug- 
gested proper  amendments. 

GUY  W.  COX, 
WILLIAM  J.  BULLOCK, 
CHAELES  V.  BLAXCHAED, 
SAMUEL  H.  MILDEAM, 
CLAEEXCE  J.  FOGG, 
EICHAED  S.  TEELIXG, 
CHAELES  J.  BULLOCK, 
BEEXAED  EAELY, 
H.  HUESTIS  XEWTOX, 

Commissioners. 


APPENDIX 


Appendix  A. 

An  Act  relating  to  Certain  Corporate  Franchise  Taxes. 
Be  it  enacted,  etc.,  as  follows: 

Section  1.  All  corporate  franchise  taxes  now  levied  upon  and 
paid  into  the  treasury  of  the  Commonwealth  by  any  railroad  cor- 
poration or  telephone  or  telegraph  corporation  shall  hereafter  be 
retained  in  the  treasury  of  the  Commonwealth,  and  shall  be  a  part 
of  the  ordinary  revenue,  to  be  used  for  such  general  or  special 
purposes  as  the  general  court  shall  determine. 

Section  2.  All  acts  or  parts  of  acts  inconsistent  herewith  are 
hereby  repealed. 

Section  3.   This  act  shall  take  effect  upon  its  passage. 


Appendix   B. 

An  Act  relative  to  the  Distribution  op  the  Franchise  Tax 
OF  Business  Corporations. 

Be  it  enacted,  etc.,  as  follows: 

Section  eighty-six  of  chapter  four  hundred  and  thirty-seven  of 
the  acts  of  the  year  nineteen  hundred  and  three  is  hereby 
amended  by  inserting  after  the  word  "  franchises,"  at  the  end 
of  the  first  sentence,  the  words :  —  one  half  of.  Said  section  is 
further  amended  by  inserting  after  the  word  "respectively,"  at 
the  end  of  the  second  sentence,  the  words :  —  The  other  half  of 
said  proportion  shall  be  distributed,  credited  and  paid  to .  the 
city  or  town  where  the  business  of  the  corporation  is  carried  on, 
and  if  a  corporation  maintains  an  office,  store  or  factory  in  more 
than  one  city  or  town  this  part  of  the  tax  shall  be  distributed, 
credited  and  paid  to  such  cities  and  towns  in  proportion  to  the 
amount  of  tangible  property  of  such  corporations  in  such  city  or 
town  on  the  first  day  of  May.  Said  section  is  further  amended 
by  inserting  after  the  word  "  trustees,"  in  the  third  sentence,  the 
words :  —  one  half  of.  Said  section  as  amended  shall  read  as 
follows :  —  Section  86.  No  taxes  shall  be  assessed  in  a  city  or 
town  for  state,  county  or  town  purposes  upon  the  shares  in  the 
capital  stock  of  domestic  corporations  for  any  year  for  which 
they  pay  to  the  treasurer  and  receiver-general  a  tax  on  the  value 
of  their  corporate  franchises.     One  half  of  such  proportion  of 


84 

the  tax  collected  of  each  of  said  corporations  as  corresponds 
to  the  proportion  of  its  stock  owned  by  persons  residing  in  this 
Commonwealth  shall  be  distributed,  credited  and  paid  to  the 
several  cities  and  towns  in  which,  from  the  returns  or  other  evi- 
dences, it  appears  that  such  persons  resided  on  the  preceding 
first  day  of  May,  according  to  the  shares  so  held  in  such  cities 
and  towns  respectively.  The  other  half  of  said  proportion  shall 
be  distributed,  credited  and  paid  to  the  city  or  town  where  the 
business  of  the  corporation  is  carried  on,  and  if  a  corporation 
maintains  an  office,  store  or  factory  in  more  than  one  city  or  town 
this  part  of  the  tax  shall  be  distributed,  credited  and  paid  to  such 
cities  and  toAvns  in  proportion  to  the  amount  of  tangible  property 
of  such  corporations  in  such  city  or  town  on  the  first  day  of  May. 
If  stock  is  held  by  co-partners,  guardians,  executors,  adminis- 
trators or  trustees,  the  proportion  of  tax  corresponding  to  the 
amount  of  stock  so  held  shall  be  credited  and  paid  to  the  cities 
and  towns  where  stock  would  have  been  taxed  under  the  provisions 
of  clauses  four,  five,  six  and  seven  of  section  twenty-three  and 
section  twenty-seven  of  chapter  twelve  of  the  Revised  Laws. 


Appendix   C. 


An  Act  relative  to  Certificates  and  Returns  of  Foreign 
Corporations. 

Be  it  enacted,  etc.,  as  follows : 

Section  sixty-six  of  chapter  four  hundred  and  thirty-seven  of 
the  acts  of  the  year  nineteen  hundred  and  three  is  hereby 
amended  by  adding  at  the  end  thereof  the  words :  —  Every  for- 
eign corporation  which  has  property  within  the  Commonwealth 
subject  to  taxation  under  the  laws  thereof  shall  annually,  between 
the  first  and  the  tenth  days  of  May,  prepare  and  file  in  the  office 
of  the  tax  commissioner  a  return  in  such  form  as  the  tax  commis- 
sioner may  prescribe,  signed  and  sworn  to  by  its  treasurer,  show- 
ing in  detail  all  its  property,  real  and  personal,  subject  to  local 
taxation  within  the  Commonwealth  on  the  said  first  day  of  May, 
and  the  location  and  value  thereof,  —  so  as  to  read  as  follows :  — 
Section  66.  Every  foreign  corporation  of  the  classes  described 
in  section  fifty-eight  shall  annually,  within  thirty  days  after  the 
date  fixed  for  its  annual  meeting  last  preceding  the  date  of  such 
certificate,  or  within  thirty  days  after  the  final  adjournment  of 
said  meeting,  but  not  more  than  three  months  after  the  date  so 
fixed  for  said  annual  meeting,  prepare  and  file  in  the  office  of  the 
secretary  of  the  Commonwealth,  upon  payment  of  the  fee  here- 
inafter provided,  a  certificate  signed  and  sworn  to  by  its  presi- 


85 

dent,  treasurer,  and  by  a  majority  of  its  board  of  directors,  show- 
ing the  amount  of  its  authorized  capital  stock,  and  its  assets 
and  liabilities  as  of  a  date  not  more  than  sixty  days  prior  to  said 
annual  meeting,  in  such  form  as  is  required  of  domestic  corpora- 
tions under  the  provisions  of  section  forty-five,  and  the  change 
or  changes,  if  any,  in  the  other  particulars  included  in  the 
certificate  required  by  section  sixty  made  since  the  filing  of  said 
certificate  or  of  the  last  annual  report.  Every  foreign  corporation 
which  has  property  within  the  Commonwealth  subject  to  taxation 
under  the  laws  thereof  shall  annually,  between  the  first  and  the 
tenth  (Jays  of  May,  prepare  and  file  in  the  office  of  the  tax  com- 
missioner a  return  in  such  form  as  the  tax  commissioner  may 
prescribe,  signed  and  sworn  to  by  its  treasurer,  showing  in  detail 
all  its  property,  real  and  personal,  subject  to  local  taxation  within 
the  Commonwealth  on  the  said  first  day  of  May,  and  the  location 
and  value  thereof. 


Appe:n^dix  D. 

An  Act  establishing  a  Uniform  Tax  on  Certain  Classes  of 
Personal  Property. 

Be  it  enacted,  etc.,  as  follows: 

Section  1.  Personal  property  of  the  classes  hereinafter  enu- 
merated belonging  to  the  inhabitants  of  the  Commonwealth  is 
hereby  exempted  from  all  taxation  other  than  that  imposed  by  this 
act,  and  shall  hereafter  be  subject  to  an  annual  tax  of  three  mills 
on  each  dollar  of  the  fair  cash  value  thereof,  viz. :  — 

(1)  Money  on  hand,  on  deposit,  or  at  interest,  and  other  debts 
due  the  person  to  be  taxed  more  than  he  is  indebted  or  pays 
interest  for;  but  not  including  in  such  debts  due  him  or  indebt- 
edness from  him  any  loan  on  mortgage  of  real  estate,  taxable  as 
real  estate,  except  the  excess  of  such  loan  above  the  assessed 
value  of  the  mortgaged  real  estate. 

(2)  Public  stocks  and  securities,  except  bonds  issued  by  the 
Commonwealth  since  January'  first,  nineteen  hundred  and  six. 

(3)  All  stocks,  bonds  and  notes  or  other  evidences  of  indebt- 
edness of  all  corporations  within  or  without  the  Commonwealth, 
except  shares  in  the  capital  stock  of  domestic  corporations, 
national  banks,  foreign  corporations  taxed  on  their  capital  stock 
in  the  Commonwealth  in  the  manner  prescribed  for  domestic 
corporations,  and  insurance  companies  paying  an  excise  to  the 
Commonwealth  on  insurance  in  force  or  premiums  collected 
within  the  Commonwealth. 

But  nothing  in  this  section  shall  apply  to  money,  credits  or 
stocks,  bonds  and  other  securities  which  are  the  moneyed  capital 


86 

of  any  banker  or  broker;  nor  shall  the  section  be  so  construed 
as  to  make  taxable  at  the  rate  of  three  mills  any  property  now 
exempt  from  taxation. 

Section  2.  The  tax  upon  the  classes  of  property  enumerated 
above  shall  be  assessed  to  the  owner  in  the  city  or  town  in  which 
he  is  an  inhabitant  on  the  first  day  of  May;  and  the  assessment 
shall  follow  the  rules  prescribed  in  the  fourth,  fifth,  sixth,  seventh, 
eighth  and  ninth  clauses  of  section  twenty-three  of  chapter  twelve 
of  the  Revised  Laws,  as  well  as  the  rules  prescribed  by  sections 
twenty-four,  twenty-five,  twenty-six  and  twenty-seven  of  said 
chapter. 

Section  3.  Before  making  an  assessment  of  property  of  the 
classes  enumerated  in  section  one,  assessors  shall  give  seasonable 
notice  to  the  inhabitants  of  their  respective  cities  and  towns,  in 
the  manner  prescribed  in  section  forty-one  of  chapter  twelve  of 
the  Revised  Laws.  They  shall  require  the  inhabitants  to  bring  in 
to  the  assessors,  before  a  date  therein  specified,  and  not  later  than 
the  first  day  of  July,  a  true  list  of  their  personal  estate  of  the 
classes  enumerated  in  section  one  and  not  exempt  from  taxation. 
But  in  his  list  or  return  of  property  taxable  under  this  act  the 
taxpayer  shall  not  return  taxable  public  stocks  and  securities 
issued  by  municipalities  and  counties  in  the  Commonwealth,  or 
bonds,  notes  and  other  evidences  of  indebtedness  of  corporations 
organized  under  the  laws  of  the  Commonwealth. 

Section  4.  The  tax  commissioner  shall  annually  prepare 
instructions  for  bringing  in  the  lists  required  by  the  preceding 
section.  He  shall  prepare  a  form  for  the  returns  which  taxpayers 
are  required  to  make  by  this  act,  and  this  form  shall  be  printed 
on  a  separate  sheet,  and  shall  be  entirely  distinct  from  the  forms 
prepared  for  the  returns  of  other  classes  of  property.  This  form 
shall  require  the  taxpayer  to  make  a  return  of  the  total  amount  of 
his  taxable  property  of  each  of  the  following  classes :  — 

(1)  Money  on  hand,  on  deposit  or  at  interest. 

(2)  Other  debts  due  the  person  to  be  taxed  more  than  he  is 
indebted  for,  but  not  including  in  such  debts  due  him  or  indebt- 
edness from  him  anj^  loan  on  mortgage  of  real  estate  taxable  as 
real  estate,  except  the  excess  of  such  loan  above  the  assessed  value 
of  the  mortgaged  real  estate. 

(3)  Public  stocks  and  securities;  except  bonds  or  other  evi- 
dences of  indebtedness  of  counties  and  municipalities  in  the  Com- 
monwealth, and  bonds  issued  by  the  Commonwealth  since  January 
first,  nineteen  hundred  and  six. 

(4)  Stocks  of  corporations;  except  shares  in  the  capital  stock 
of  domestic  corporations,  national  banks,  foreign  corporations 
taxed  on  their  capital  stock  in  the  Commonwealth  in  the  manner 
prescribed  for  domestic   corporations,   and  insurance   companies 


87 

paying  an  excise  to  the  Commonwealth  on  insurance  in  force  or 
premiums  collected  within  the  Conunonwealth. 

(5)  Bonds,  notes  and  other  evidences  of  indebtedness  of  all 
corporations  not  organized  under  the  laws  of  the  Commonwealth. 

The  taxpayer  shall  not  be  required  to  return  in  detail  the  items 
constituting  the  total  amount  of  taxable  property  listed  in  each 
class. 

The  tax  commissioner  shall  cause  to  be  printed  and  shall  fur- 
nish to  the  assessors  in  each  city  or  town  blank  lists  for  the 
return  of  property  taxable  under  this  act,  and  the  assessors  shall 
distribute  said  lists  to  every  person  liable  to  taxation. 

Section  5.  The  assessors  shall  in  all  cases  require  a  person 
bringing  in  a  list  to  make  oath  that  it  is  true,  and  this  oath  shall 
be  made  as  prescribed  in  section  forty-three  of  chapter  twelve  of 
the  Revised  Laws.  Such  lists  shall  be  open  to  the  inspection  of 
the  assessors,  their  assistants  and  clerks,  and  of  the  tax  commis- 
sioner, his  deputies,  assistants  and  clerks,  when  acting  under  his 
authority.  But  the  details  of  the  lists  made  by  taxpayers  shall 
be  disclosed  to  no  other  person  except  by  order  of  court;  and 
any  assessor  or  other  person  who  shall  disclose  such  details  shall 
be  liable  to  a  fine  of  not  less  than  one  hundred  nor  more  than  five 
hundred  dollars.  The  lists  shall  be  preserved  by  the  assessors 
until  the  tax  commissioner  orders  them  to  be  destroyed. 

Section  6.  The  assessors  shall  receive  as  true,  except  as  to 
valuation,  the  list  brought  in  by  each  person,  unless  on  being 
thereto  required  by  the  assessors  he  refuses  to  answer  on  oath  all 
reasonable  and  necessary  inquiries  as  to  the  nature  and  amount 
of  his  property  taxable  under  the  provisions  of  this  act. 

Section  7.  They  shall  ascertain  as  nearly  as  possible  the  par- 
ticulars of  the  personal  estate  subject  to  taxation  under  this  act 
of  any  person  who  has  not  brought  in  such  list,  and  shall  estimate 
its  just  value,  according  to  their  best  information  and  belief. 
They  shall  also  add  thereto  fifty  per  cent,  of  the  estimated  value 
of  such  property  as  a  penalty;  and  such  estimate,  with  the 
penalty  of  fifty  per  cent.,  shall  be  entered  in  the  valuation  books, 
and,  except  as  provided  in  sections  seventy-three  and  seventy-four 
of  chapter  twelve  of  the  Revised  Laws,  shall  be  conclusive  upon 
any  person  who  has  not  seasonably  brought  in  a  list  of  his  estate, 
unless  he  can  show  a  reasonable  excuse  for  the  omission. 

Section  8.  In  making  such  estimate  the  assessors  shall  specify 
the  amount  of  each  class  of  property  taxable  under  this  act,  as 
enumerated  in  section  four,  and  shall  enter  the  same  upon  the 
books  furnished  under  the  provisions  of  section  ten.  An  error  or 
over-estimate  of  any  class  shall  not  be  taken  into  account  in 
determining  whether  a  person  is  entitled  to  an  abatement,  but 
only  the  aggregate  amount  of  such  estimate. 


88 

Section  9.  After  property  taxable  under  the  provisions  of  this 
act  has  been  legally  assessed  in  any  city  or  town  to  any  inhabitant 
of  the  Commonwealth,  including-  any  executor,  administrator  or 
trustee,  an  amount  not  less  than  that  last  assessed  by  the  assessors 
of  such  city  or  town  in  respect  of  such  property  shall  be  deemed 
to  be  the  sum  assessable,  until  a  true  list  of  such  property  is 
brought  in  to  the  assessors  in  accordance  with  the  provisions  of 
section  three  of  this  act.  When  a  person  liable  to  be  taxed  for 
personal  property  included  within  the  provisions  of  this  act 
changes  his  domicile,  the  assessors  of  the  city  or  town  to  which  he 
removes  shall  assess  him  for  an  amount  not  less  than  that  for 
which  he  was  assessed  in  the  city  or  town  from  which  he  removes, 
until  he  files  the  list  required  by  section  three  of  this  act.  The 
duties  of  assessors  under  this  section  shall  be  the  same  as  pre- 
scribed in  section  ninety-two  of  chapter  twelve  of  the  Revised 
Laws;  and  whoever  neglects  to  perform  any  duty  imposed  upon 
him  by  this  section  shall  be  punished  by  a  fine  of  not  less  than 
fifty  nor  more  than  two  hundred  dollars. 

Section  10,  Property  taxable  under  this  act  shall  not  be  in- 
cluded in  the  valuation  list  which  assessors  are  required  to  make 
under  the  provisions  of  sections  fifty-six,  fifty-seven,  fifty-eight 
and  fifty-nine  of  chapter  twelve  of  the  Revised  Laws;  but  it 
shall  be  listed  in  a  separate  book  which  the  secretary  of  the 
Commonwealth  shall  provide  for  each  city  or  town  annually  on  or 
before  the  first  day  of  May.  This  book  shall  show  the  total 
amount  of  property  of  each  class  assessed  to  each  taxpayer  under 
the  provisions  of  this  act,  and  shall  not  disclose  further  details 
of  his  assessment.  When  making  the  return  to  the  secretary  of 
the  Commonwealth  provided  for  by  sections  sixty,  sixty-one  and 
sixty-two  of  chapter  twelve  of  the  Revised  Laws,  assessors  shall 
return  also  an  attested  copy  of  the  lists  of  persons  and  property 
taxed  under  the  provisions  of  this  act.  Such  copy  shall  contain 
the  number  of  individuals,  firms,  associations,  trustees,  etc., 
assessed  for  such  property,  and  the  total  amount  of  each  class  of 
property,  as  well  as  the  aggregate  of  all  classes  of  property  taxed 
under  the  provisions  of  this  act.  And  the  secretary  of  the  Com- 
monwealth, when  compiling  the  returns  required  by  section  sixty- 
three  of  chapter  twelve  of  the  Revised  Laws,  shall  include,  under 
a  separate  heading,  the  aggregate  assessment  in  each  city  or  town 
of  property  taxed  under  the  provisions  of  this  act. 

Section  11.  At  the  end  of  the  valuation  lists  required  by  the 
preceding  section,  the  assessors,  or  other  persons  authorized  to 
assess  taxes  in  a  city  or  town,  shall  subscribe  and  take  the  oath 
prescribed  by  section  sixty-five  of  chapter  twelve  of  the  Revised 
Laws;  and  for  failure  to  take  and  subscribe  said  oath  shall  be 
punished  by  a  fine  of  ten  dollars;  but  said  failure  shall  not 
render  invalid  a  tax  otherwise  legally  assessed. 


89 

Section  12.  Whoever  evades  taxation  upon  property  subject 
to  the  provisions  of  this  act,  in  any  of  the  ways  specified  in  sec- 
tions twenty-nine,  thirty,  thirty-one  or  thirty-two  of  chapter 
twelve  of  the  Revised  Laws,  shall  be  subject  to  the  penalties 
prescribed  respectively  by  those  sections;  and  any  assessor  guilty 
of  making  or  assenting  to  any  proposal  for  the  evasion  of  taxa- 
tion shall  be  subject  to  the  penalty  prescribed  in  section  twenty- 
nine  of  chapter  twelve  of  the  Revised  Laws.  And  the  provisions 
of  section  thirty-three  of  said  chapter  shall  apply  to  the  assess- 
ment of  persons  liable  to  taxation  under  the  provisions  of  this 
act. 

Section  13.  Tax  lists  and  warrants  for  the  collection  of  the 
tax  authorized  by  this  act  shall  be  committed  to  collectors  of  taxes 
within  a  reasonable  time,  and  subject  to  all  the  conditions  and 
requirements  prescribed  in  sections  sixty-seven,  sixty-eight,  sixty- 
nine  and  seventy  of  chapter  twelve  of  the  Revised  Laws.  But  the 
tax  list  prescribed  in  section  sixty-eight  of  said  chapter  shall 
include  in  a  separate  column  the  amount  of  the  tax  on  the  classes 
of  property  subject  to  the  provisions  of  this  act. 

Section  14.  The  provisions  of  sections  seventy-one  to  eighty- 
four,  inclusive,  and  sections  eighty-six,  eighty-seven  and  ninety- 
one  of  chapter  twelve  of  the  Revised  Laws  shall  apply,  in  so  far 
as  they  relate  to  personal  property,  to  all  taxes  levied  in  accord- 
ance with  this  act. 

Section  15.  In  the  apportionment  of  the  state  tax  the  tax 
commissioner  shall  include  in  the  valuation  of  taxable  property 
in  each  city  or  town  all  property  assessed  under  this  act. 

Section  16.  In  computing  the  rate  of  the  tax  to  be  levied  on 
corporate  franchises  the  tax  commissioner  shall  omit  from  the 
aggregate  valuation  of  all  cities  and  towns  all  property  taxed 
under  this  act,  and  shall  omit  from  the  whole  amount  of  money 
to  be  raised  by  taxation  upon  property  in  the  Commonwealth 
the  taxes  assessed  under  this  act. 

Section  17.  The  tax  commissioner,  or  his  deputy,  and  the  first 
assistant  tax  commissioner,  are  hereby  authorized  to  list  for  taxa- 
tion in  any  city  or  town  property  subject  to  taxation  under  this 
act  and  not  listed  by  the  assessors  in  such  city  or  town ;  and  they 
are  further  authorized  to  revise  the  valuation  of  such  property.  A 
person  aggrieved  by  the  taxes  assessed  upon  him  in  accordance 
with  the  provisions  of  this  section  may  apply  to  the  tax  commis- 
sioner for  an  abatement  thereof,  or  may  appeal  to  the  superior 
court  of  the  county  in  which  he  is  assessed.  In  order  to  carry 
out  the  provisions  of  this  section,  the  tax  commissioner  is  author- 
ized to  appoint  permanent  clerks,  who  shall  receive  such 
compensation  as  may  be  fixed  by  the  governor  and  council. 

Section  18.  It  shall  be  the  duty  of  the  tax  commissioner,  from 
time  to  time,  to  send,  by  registered  letter,  to  the  assessors  in  each 


90 

city  or  town  in  the  Commonwealth  the  names  of  all  persons  having 
a  residence  in  said  city  or  town,  who,  from  the  returns  made  by 
executors,  administrators  and  trustees  under  the  provisions  of 
chapter  five  hundred  and  sixty-three  of  the  acts  of  the  year  nine- 
teen hundred  and  seven,  shall  appear  to  have  any  beneficial 
interest  in  any  estate  passing  by  will,  or  by  the  laws  regulating 
intestate  succession,  or  by  deed,  grant  or  gift;  and  in  the  dis- 
charge of  this  duty  he  shall  have  authority,  with  the  advice  and 
consent  of  the  governor  and  council,  \o  appoint  one  assistant,  at 
such  salary  as  may  be  fixed  by  the  governor  and  council;  and  he 
shall  further  have  authority  to  appoint  such  permanent  clerks  as 
he  may  need  to  assist  in  carrying  out  the  provisions  of  this  sec- 
tion. It  shall  further  be  the  duty  of  the  tax  commissioner  to 
transmit  to  the  assessors  in  each  city  or  town  in  the  Common- 
wealth any  other  information  that  may  come  to  his  office  concern  - 
ing  property  taxable  under  this  act  in  said  city  or  town. 

Section  19.  Every  executor,  administrator  and  trustee  in  the 
Commonwealth  shall  file  with  the  tax  commissioner  his  name  and 
residence,  as  well  as  the  name  and  residence  of  every  person 
having  a  beneficial  interest  in  any  personal  estate  under  his 
charge,  on  or  before  the  first  day  of  May  in  each  year.  If  any 
executor,  administrator  or  trustee  fails  to  register  with  the  tax 
commissioner  on  or  before  the  first  day  of  May  in  any  year,  as 
herein  required,  he  shall  be  fined,  except  during  the  first  year  in 
which  this  act  is  in  force,  a  sum  not  more  than  five  hundred  dol- 
lars ;  and  no  final  account  of  an  executor,  administrator  or  trustee 
shall  be  allowed  by  the  probate  court  unless  such  account  shows, 
and  the  judge  of  said  court  finds,  that  the  taxes  imposed  by  this 
act  have  been  paid  in  every  year  for  which  they  were  due.  It 
shall  be  the  duty  of  the  tax  commissioner,  on  or  before  the  first 
day  of  June  in  each  year,  to  transmit  to  each  city  or  town  in  the 
Commonwealth  the  name  of  every  resident  of  said  city  or  town 
having  a  beneficial  interest  in  any  personal  estate  under  the  charge 
of  any  executor,  administrator  or  trustee,  as  well  as  the  name  and 
residence  of  said  executor,  administrator  or  trustee. 

Section  20.  In  assessing  taxes  under  the  provisions  of  sec- 
tion thirty-seven  of  chapter  twelve  of  the  Revised  Laws,  the 
assessors  in  any  city  or  town  shall  include  in  the  estimated  re- 
ceipts lawfully  applicable  to  the  payment  of  expenditures  the 
amount  received  during  the  previous  year  from  taxes  levied  in 
accordance  with  this  act.  But  in  the  year  nineteen  hundred  and 
nine  they  shall  include  in  said  estimated  receipts  not  more  than 
ninety  per  cent,  of  the  taxes  payable  in  respect  to  property 
assessed  under  this  act  prior  to  the  fifteenth  day  of  August  in 
said  year. 

Section  21.  All  taxes  assessed  in  accordance  with  this  act, 
except  as  provided  in  section  twenty-two,  shall  be  collected  as 


91 

provided  in  chapter  thirteen  of  the  Revised  Laws;  and  all  the 
provisions  of  said  chapter,  in  so  far  as  they  relate  to  personal 
property,  shall  apply  to  taxes  assessed  under  this  act. 

Section  22.  On  and  after  the  first  day  of  January  of  the  year 
nineteen  hundred  and  nine,  the  treasurer  of  each  county,  city 
and  town  in  the  Commonwealth,  when  paying  interest  upon  any 
bond,  note  or  other  evidence  of  indebtedness,  due  to  residents  of 
the  Commonwealth  liable  to  taxation,  shall  deduct  the  tax  imposed 
by  this  act;  and  the  nominal  or  face  value  of  said  bond,  note  or 
evidence  of  indebtedness  shall  be  taken  to  be  the  fair  cash  value 
thereof.  And  in  paying  interest  upon  any  coupon  bonds  said 
treasurer  shall  deduct  a  proportionate  part  of  the  tax,  as  herein  re- 
quired, unless  the  owner  thereof  shall  duly  certify  on  oath  that  he 
is  not  a  resident  of  the  Commonwealth;  or  unless  it  shall  be  so  cer- 
tified that  the  bonds  are  the  absolute  property  of  a  person,  society 
or  association  exempt  from  taxation  under'the  provisions  of  sec- 
tion five  of  chapter  twelve  of  the  Revised  Laws;  or  that  they  are 
the  absolute  property  of  a  corporation  not  liable  to  taxation  in  this 
Commonwealth  upon  its  personal  property.  In  the  absence  of 
affirmative  proof  to  the  contrary,  all  bonds,  notes  or  evidences  of 
indebtedness  of  counties,  cities  or  towns,  whether  the  interest  is 
payable  by  coupon  or  otherwise,  shall  be  assumed  to  be  owned  by 
residents  of  the  Commonwealth.  Nothing  in  this  section  shall  be 
construed  to  apply  to  any  bonds,  notes  or  other  evidences  of  indebt- 
edness issued  by  any  county,  city  or  town,  and  held  in  its  sinking 
fund;  or  to  any  of  said  bonds,  notes  or  evidences  of  indebtedness 
held  by  the  Commonwealth  in  any  of  its  funds.  The  treasurer  of 
each  county  in  the  Commonwealth  shall  remit  to  the  treasurer  and 
receiver-general,  on  or  before  the  fifteenth  day  of  October  in  each 
year,  all  taxes  deducted  under  the  provisions  of  this  section;  and 
on  or  before  the  same  date  shall  report  on  oath  to  the  tax  com- 
missioner the  names  and  addresses  of  all  residents  of  the  Com- 
monwealth owning  bonds  other  than  coupon  bonds,  or  notes  and 
other  evidences  of  indebtedness  of  said  county.  The  treasurer  of 
each  city  or  town  in  the  Commonwealth  shall  retain  for  the  use 
of  said  city  or  toAvn  all  taxes  deducted  from  interest  paid  on 
bonds  other  than  coupon  bonds,  or  on  notes  and  other  evidences 
of  indebtedness  owned  by  residents  of  said  city  or  town;  and,  on 
or  before  the  fifteenth  day  of  October  in  each  year,  shall  remit 
to  the  treasurer  and  receiver-general  all  other  taxes  deducted  in 
accordance  with  the  provisions  of  this  section.  And  on  or  before 
the  same  date  the  treasurer  of  each  city  or  town  shall  report  on 
oath  to  the  tax  commissioner  the  names  and  addresses  of  all  resi- 
dents of  the  Commonwealth,  other  than  residents  of  said  city  or 
town,  owning  bonds  other  than  coupon  bonds,  or  notes  and  other 
evidences  of  indebtedness  of  said  city  or  town. 

Section  23.   On  and  after  the  first  day  of  January  in  the  year 


92 

nineteen  hundred  and  nine  the  treasurer  of  every  corporation  or- 
ganized under  the  laws  of  the  Common weahh,  when  paying  inter- 
est upon  any  bond,  note  or  other  evidence  of  indebtedness  owned 
by  residents  of  this  CommonweaUh  liable  to  taxation,  shall  deduct 
a  proportionate  part  of  the  tax  imposed  by  this  act;  and  for  the 
purpose  of  this  act  the  nominal  or  face  value  of  said  bond,  note  or 
other  evidence  of  indebtedness  shall  be  taken  to  be  the  fair  cash 
value  thereof.  And  in  paying  the  interest  upon  any  coupon  bond 
the  said  treasurer  shall  deduct  the  tax  as  herein  required,  unless  the 
owner  thereof  shall  certify  on  oath  that  he  is  not  a  resident  of  the 
Commonwealth ;  or  unless  it  shall  be  so  certified  that  the  bonds  are 
the  absolute  property  of  a  person,  society  or  association  exempt 
from  taxation  under  the  provisions  of  section  five  of  chapter 
twelve  of  the  Revised  Laws;  or  that  they  are  owned  by  a  cor- 
poration not  liable  to  taxation  in  this  Commonwealth  upon  its 
personal  property.  'In  the  absence  of  affirmative  proof  to  the 
contrary,  all  bonds,  notes  or  other  evidences  of  indebtedness, 
whether  the  interest  is  payable  by  coupon  or  otherwise,  shall  be 
assumed  to  be  owned  by  residents  of  the  Commonwealth.  Nothing 
in  this  section  shall  be  construed  to  apply  to  any  bonds,  notes  or 
other  evidences  of  indebtedness  of  any  corporation  which  may  be 
held  by  the  Commonwealth,  or  by  any  county,  city  or  town  in  its 
funds.  The  treasurer  of  every  corporation  shall  remit  to  the 
treasurer  and  receiver-general,  on  or  before  the  fifteenth  day  of 
October  in  each  year,  all  taxes  deducted  under  the  provisions  of 
this  section;  and  for  failure  to  deduct  and  pay  the  tax  as  re- 
quired in  this  act  the  treasurer  and  receiver-general  shall,  as  a 
penalty,  add  twelve  per  cent,  per  annum  to  the  sum  which  the 
delinquent  corporation  is  required  to  remit  to  the  treasury  of  the 
Commonwealth.  And  it  shall  be  the  duty  of  the  treasurer  of 
every  corporation  to  report  on  oath  to  the  tax  commissioner  on 
or  before  the  fifteenth  day  of  October  in  each  year  the  names  and 
addresses  of  the  owners  of  all  bonds,  notes  or  other  evidences  of 
indebtedness  issued  by  said  corporation,  other  than  bonds  upon 
which  interest  is  payable  by  coupon;  and  whenever  a  corporation 
pays  any  interest  which  has  accrued  upon  its  bonds,  notes  or  other 
evidences  of  indebtedness  in  any  prior  year,  except  any  year  pre- 
ceding that  in  which  this  act  shall  take  effect,  the  said  corporation 
shall  deduct  the  tax  for  each  year  in  which  the  accrued  interest 
remained  unpaid. 

Section  24.  On  or  before  the  first  day  of  November  in  each 
year  the  treasurer  and  receiver-general  shall  distribute  to  each 
city  or  town  in  the  Commonwealth  all  taxes  paid  into  the  treasury, 
in  accordance  with  sections  twenty-one  and  twenty-two  of  this 
act,  in  respect  of  bonds  other  than  coupon  bonds,  or  notes  and 
other  evidences  of  indebtedness,  owned  by  residents  of  said  city  or 


93 

town ;  but  taxes  collected  upon  coupon  bonds  shall  be  retained  for 
the  use  of  the  Commonwealth. 

Section  25.  Section  four  of  chapter  twelve  of  the  Revised 
Laws  is  hereby  amended  by  striking  out  the  whole  of  said  section, 
and  inserting  in  place  thereof  the  following :  —  Personal  estate 
for  the  purpose  of  taxation  shall  include  all  goods,  chattels,  ships 
and  vessels  at  home  or  abroad,  except  those  engaged  in  the  foreign 
carrying  trade,  and  other  personal  estate  not  exempted  from  taxa- 
tion ;  and  shall  include  the  moneyed  capital  of  bankers  or  brokers, 
the  income  from  an  annuity,  and  the  excess  above  two  thousand 
dollars  of  the  income  from  a  profession,  trade  or  employment  ac- 
cruing to  the  person  to  be  taxed  during  the  year  ending  on  the  first 
day  of  May  of  the  year  in  which  the  tax  is  assessed;  but  incomes 
derived  from  property  subject  to  taxation  shall  not  be  taxed. 

Section  26.  Section  twenty-three  of  chapter  twelve  of  the 
Revised  Laws  is  hereby  amended  by  inserting  in  the  first  line  of 
the  first  clause  thereof,  after  the  words  "  other  stock  in  trade," 
the  words :  —  including  the  moneyed  capital  of  all  bankers  or 
brokers;  and  by  inserting  in  the  seventh  line,  after  the  word 
"  stores,"  the  word :  —  offices,  —  so  that  said  section  shall  read 
as  follows :  —  First,  the  goods,  wares,  merchandise  and  other 
stock  in  trade,  including  the  moneyed  capital  of  all  bankers  or 
brokers,  except  ships  or  vessels  owned  by  a  co-partnership,  and 
stock  employed  in  the  business  of  manufacturing  or  of  the 
mechanic  arts  in  cities  or  towns  in  the  Commonwealth,  other  than 
those  in  which  the  owners  reside,  whether  such  owners  reside 
within  or  without  the  Commonwealth,  shall  be  taxed  in  the  cities 
or  towns  in  which  the  owners  hire  or  occupy  manufactories, 
stores,  offices,  shops  or  wharv^es,  whether  such  property  is  in  said 
place  or  elsewhere  on  the  first  day  of  May  of  the  year  when  the 
tax  is  assessed. 

Section  27.  This  act  shall  take  effect  on  the  first  day  of  Jan- 
uary, nineteen  hundred  and  nine. 


Appendlx:  E. 

An  Act  to  provide  for  the  More  Effective  Administration 
OF  THE  Laws  relating  to  Taxation. 

Be  it  enacted,  etc.,  as  follows: 

Section  1.  The  tax  commissioner  may,  with  the  advice  and 
consent  of  the  governor  and  council,  appoint,  and  with  their  con- 
sent remove,  twelve  supervisors  of  assessors,  who,  under  the  direc- 
tion and  control  of  the  tax  commissioner,  shall  have  such  super- 
vision over  the  boards  of  assessors  and  collectors  of  taxes  of  the 


94 

several  cities  and  towns  of  the  Commonwealth  as  is  authorized 
by  law.  Each  supervisor  of  assessors  shall  receive  such  compen- 
sation as  the  tax  commissioner,  with  the  approval  of  the  governor 
and  council,  shall  determine,  and  shall  be  allowed  his  travelling 
and  other  necessary  expenses. 

Section  2.  The  supervisors  of  assessors  shall  perform,  subject 
to  the  control,  approval  and  direction  of  the  tax  commissioner, 
all  the  duties  imposed  upon  said  tax  commissioner  by  section  five 
of  chapter  fourteen  of  the  Revised  Laws,  and  such  additional 
duties  as  may  be  provided  in  this  act,  and  shall  have  and  exercise 
under  the  control  of  said  tax  commissioner  all  his  powers  and 
authority  as  to  the  taxation  of  property  and  the  collection  of 
taxes  thereon  imposed  by  law. 

Section  3.  Whenever  it  shall  appear  to  the  tax  commissioner 
or  a  supervisor  of  assessors  that  the  property  or  any  part 
thereof  in  any  city  or  town  is  not  valued  for  the  purposes  of 
taxation  in  accordance  with  the  provisions  of  law,  and  that  such 
failure  to  comply  with  the  law  is  the  result  of  inadequate  meth- 
ods in  keeping  the  records  of  valuation  or  ownership  of  property, 
or  is  due  to  a  failure  upon  the  part  of  the  assessors  or  any  of 
them  of  such  city  or  town  to  properly  examine  the  records  of  the 
registry  of  deeds  and  probate  court  or  to  make  use  of  the  infor- 
mation required  by  law  to  be  furnished  to  boards  of  assessors  by 
the  tax  commissioner,  he  shall  forthwith  direct  the  assessors  of 
said  city  or  town  to  adopt  such  methods  of  keeping  their  records 
or  to  make  such  examination  of  the  records  of  the  registry  of 
deeds  and  probate  court  or  to  make  such  use  of  the  information 
that  he,  in  accordance  with  law,  has  furnished  them,  as  he  may 
deem  necessary.  Failure  on  the  part  of  any  assessor  to  comply 
with  the  directions  of  the  tax  commissioner  or  supervisors  of 
assessors  as  herein  provided  shall  make  such  assessor  liable  to  the 
penalties  imposed  by  section  thirty-nine  of  chapter  twelve  of  the 
Revised  Laws. 

Section  4.  The  supervisors  of  assessors  shall,  under  the  direc- 
tion of  the  tax  commissioner,  on  or  before  the  first  day  of  May 
in  each  year,  furnish  to  each  board  of  assessors  of  the  cities  and 
towns  of  the  Commonwealth  all  the  information  relating  to  the 
assessment,  valuation  and  ownership  of  property  of  any  inhab- 
itant of  said  city  or  town  that  has  come  into  possession  of  the 
tax  commissioner's  department,  particularly  under  the  provisions 
of  chapter  five  hundred  and  sixty-three  of  the  acts  of  the  year 
nineteen  hundred  and  seven.  They  shall  have  authority,  under  the 
direction  of  the  tax  commissioner,  to  revise  the  valuation  of  all 
property  for  the  purposes  of  taxation;  and  any  person  aggrieved 
by  such  revision  may  appeal  to  the  superior  court  for  the  county 
in  which  the  property  is  situated.  They  shall  render  to  said  boards 
of  assessors  such  further  instruction  and  super^'ision  as  to  their 


95 

respective  duties  as  may  be  necessary  to  secure  uniform  assessment 
and  just  taxation  and  to  equalize  the  valuation  of  property  for 
purposes  of  state,  county  and  local  taxes. 

Section  5.    This  act  shall  take  effect  upon  its  passage. 


Appendix  F. 

An  Act  relative  to  the  Pow^ers  of  the  Tax  Commissioner. 

Be  it  enacted,  etc.,  as  follows: 

Section  five  of  chapter  fourteen  of  the  Revised  Laws  is  hereby 
amended  by  adding  at  the  end  of  said  section  the  following :  — 
He  or  his  deputy  shall  give  their  opinion  to  assessors  and  col- 
lectors upon  any  question  arising  under  any  statute  relating  to  the 
assessment  and  collection  of  taxes,  and  may  advise  and  consult 
with  the  attorney-general  upon  all  questions  arising  under  this 
provision,  —  so  that  said  section  shall  read  as  follows :  —  Sec- 
tion 5.  He  or  his  deputy  may  visit  any  city  or  town,  inspect  the 
work  of  its  assessors  and  give  to  them  such  information  and  re- 
quire of  them  such  action  as  will  tend  to  produce  uniformity  in 
valuation  and  assessments  throughout  the  Commonwealth.  He 
or  his  deputy  may  cause  an  assessor  who  violates  any  of  the  laws 
relative  to  the  assessment  of  taxes  for  which  a  penalty  is  imposed 
to  be  prosecuted,  either  in  the  county  in  which  said  officer  resides 
or  in  an  adjoining  county.  He  or  his  deputy  may  appear  before 
the  superior  court  or  any  board  of  county  commissioners  sitting 
for  the  abatement  of  taxes.  He  and  his  deputy  shall  be  allowed 
their  reasonable  travelling  expenses  incurred  under  the  provisions 
of  this  section.  He  or  his  deputy  shall  give  their  opinion  to 
assessors  and  collectors  upon  any  question  arising  under  any 
statute  relating  to  the  assessment  and  collection  of  taxes,  and  may 
advise  and  consult  with  the  attorney-general  upon  all  questions 
arising  under  this  provision. 


Appeisdix   G. 

An  Act  relative  to  the  Compensation  of  Assessors. 

Be  it  enacted,  etc.,  as  follows: 

Section  ninety-nine  of  chapter  twelve  of  the  Revised  Laws  is 
hereby  amended  by  striking  out  the  word  "  two,"  in  the  second 
line  of  said  section  and  inserting  in  place  thereof  the  word :  — 
three,  —  so  as  to  read  as  follows :  —  Section  99.  Each  assessor 
shall  be  paid  by  his  city  or  town  three  dollars  and  fifty  cents  a 
day  for  every  whole  day  in  which  he  is  employed  in  that  service, 
and  such  additional  compensation  as  the  city  or  town  shall  allow. 


96 


Appendix  H. 

An  Act  to  exempt  from  Taxation  Future  Issues  of  Munici- 
pal AND  County  Bonds. 

Be  it  enacted,  etc.,  as  follows: 

Section  1.  Bonds  or  certificates  of  indebtedness  of  any  county, 
city  or  town  in  the  Commonwealth  issued  since  the  first  day  of 
January  in  the  year  nineteen  hundred  and  nine,  or  which  may 
hereafter  be  issued,  shall  be  exempt  from  taxation  for  state, 
county,  city  or  town  purposes.  Such  bonds  or  certificates  of  in- 
debtedness shall  state  upon  their  face  that  they  are  exempt  from 
taxation  in  Massachusetts. 

Section  2.    This  act  shall  take  effect  upon  its  passage. 


Appendix   I. 


Table  showing  the  Distribution  of  Railroad,  Telephone  and 
Telegraph  Taxes  ;  also,  the  Apportionment  of  the  State 
Tax  for  1907  to  Each  City  and  Town. 

Of  the  $1,881,341  paid  into  the  treasury  of  the  Commonwealth 
on  corporate  franchise  taxes  by  railroad,  telegraph  and  telephone 
corporations  in  1907,  $1,068,393  was  distributed  to  the  cities  and 
towns  on  the  basis  of  ownership  of  stock  by  inhabitants  of  the 
Coiomonwealth.  The  subjoined  table  shows  the  amount  distrib- 
uted to  each  city  or  town,  as  well  as  the  amount  paid  by  each  city 
or  town  as  its  quota  of  the  State  tax. 


Railroad,  Telephone  and  Telegraph  Taxes,  1907. 


Abington,      .          .          .         S266  21.1 

Auburn, 

$131  22.9 

Acton, 

495  49.8 

Avon,  . 

190  05.6 

Acushnet, 

17.1 

Ayer,    . 

455  00.6 

Adams, 

56  16.8 

Agawam, 

413  87.1 

Barnstable,   . 

3,158  18.7 

Alford, 

- 

Barre,  . 

374  22.5 

Amesbury, 

417  44.4 

Becket, 

84  14.4 

Amherst, 

533  00.9 

Bedford, 

332  06.3 

Andover, 

5,229  19.0 

Belchertown, 

45  66.8 

Arlington, 

2,610  30.9 

Bellingham,  . 

2  13.0 

Ashburnham 

91  34.9 

Belmont, 

2,476  19.9 

Ashby, 

356  95.6 

Berkley, 

60  61.4 

Ashfield, 

45  66.5 

Berlin, 

34  99.0 

Ashland, 

119  97.5 

Bernardston, 

329  23.6 

Athol,  . 

376  64.9 

Beverly, 

9,734  00.5 

Attleborough, 

308  05.6 

Billerica, 

1,736  37.7 

97 


Railroad,  Telephone  and  Telegraph  Taxes,  1907  —  Continued. 


Blackstone,  .          .          .         $132  55.2 

East  Bridgewater, 

$734  28.2 

Blandford, 

172  30.8 

East  Longmeadow, 

5  61.4 

Bolton, 

35  09.5 

Eastham, 

115  44.3 

Boston, 

.    365,072  24.5 

Easthampton, 

579  29.6 

Bourne, 

1,167  70.5 

Easton, 

1,552  33.6 

Boxborough, 

17  77.4 

Edgartown,  . 

392  98.1 

Boxford, 

2,084  85.5 

Egremont,     . 

. 

Boylston, 

9  10.8 

Enfield,     '     . 

796  14.1 

Braintree, 

2,490  50.2 

Erving, 

13  25.6 

Brewster, 

406  30.0 

Essex, 

17  24.2 

Bridgewater, 

569  57.7 

Everett, 

820  72.6 

Brimfield, 

66  84.6 

Brockton, 

1,291  13.5 

Fairhaven,     . 

1,010  04.1 

Brookfield, 

673  74.0 

Fall  River, 

1,833  40.4 

Brookline, 

66,441  80.6 

Falmouth,     . 

8,238  53.7 

Buckland, 

74  73.0 

FiTCHBURG,    . 

16,074  04.9 

Burlington, 

73  67.6 

Florida, 
Foxborough, 

66  93.6 

Cambridge, 

40,196  72.9 

Framingham, 

4,169  59.2 

Canton, 

1,924  70.2 

Franldin, 

815  67.9 

Carlisle, 

6  85.2 

Freetown, 

192  32.4 

Carver, 

100  83.4 

Charlemont, 

27  20.0 

Gardner, 

930  64.0 

Charlton, 

92  35.1 

Gay  Head,     . 

- 

Chatham, 

232  35.8 

Georgetown, 

4  99.4 

Chelmsford, 

610  61.8 

Gill.      . 

11  08.2 

Chelsea, 

1.034  74.8 

Gloucester. 

915  42.2 

Cheshire, 

5  46.6 

Goshen, 

2  26.3 

Chester, 

25  26.9 

Gosnold, 

74  93.3 

Chesterfield, 

3  01.7 

Grafton, 

1,029  83.7 

Chicopee, 

2,216  11.2 

Granby, 

107  65.1 

Chilmark, 

7  27.9 

Granville, 

21  90.6 

Clarksburg, 

- 

Great  Barrington, 

954  39.1 

CUnton, 

323  00.7 

Greenfield,     . 

1,953  26.3 

Cohasset, 

6,267  37.4 

Greenwich,    . 

3  77.3 

Colrain, 

131  35.5 

Groton, 

3,021  86.  J 

Concord, 

6,399  19.8 

Groveland,     .          .          . 

32  82.5 

Conway, 

68  11.1 

Cummington, 

15  80.6 

Hadley, 
Halifax, 

143  12.3 
170  47.8 

Dalton, 

5,712  22.3 

Hamilton,      . 

1,246  45.6 

Dana,  . 

. 

30  68.8 

Hampden,     . 

8  91.8 

Danvers, 

, 

535  08.1 

Hancock, 

114  77.6 

Dartmouth,  . 

, 

-~ 5,219  98.6 

Hanover, 

1,046  85.7 

Dedham, 

. 

5,450  68.2 

Hanson, 

64  73.8 

Deerfield, 

222  18.0 

Hardwick,     . 

693  67.3 

Dennis, 

496  69.6 

Harvard, 

993  91.2 

Dighton, 

3  73.2 

Harwich, 

765  29.5 

Douglas, 

73  90.9 

Hatfield, 

178  05.7 

Dover, 

2,441  86.6 

Haverhill, 

7,236  64.6 

Dracut, 

46  32.9 

Hawley, 

3  40.0 

Dudley, 

136  74.4 

Heath, 

27  20.0 

Dunstable,     . 

318  19.6 

Hingham, 

4,069  11.6 

Duxbury, 

1,067  76.5 

Hinsdale, 

335  55.2 

98 


Railroad,  Telephone  and  Telegraph  Taxes,  1907  —  Continued. 

Holbrook,      . 

$514  03.3 

Middleborough, 

.       $2,499  33.2 

Holden, 

513  30.1 

Middlefield,  . 

45  38.4 

Holland, 

2  92.8 

Middleton,     . 

7  97.4 

HoUiston, 

613  84.9 

.  Milford, 

314  64.3 

HOLYOKE,        . 

.       13,409  46.0 

Millbury,        . 

558  05.8 

Hopedale, 

3,179  91.4 

Millis,  . 

106  05.6 

Hopkinton,    . 

196  94.6 

Milton, 

.       28,522  08.7 

Hubbardston, 

.       '      51  79.7 

Monroe, 

89.5 

Hudson, 

159  21.4 

Monson, 

1,540  39.1 

Hull,    . 

4  70.0 

Montague,     . 

255  69.5 

Huntington, 

18  77.1 

Monterey, 

73  41.4 

Hyde  Park,  . 

1,518  26.9 

Montgomery, 

. 

Mount  Washington, 

. 

Ipswich, 

1,608  11.0 

Nahant, 

.       12,663  14.0 

Kingston, 

2,147  15.7 

Nantucket,    . 

1,249  08.4 

Natick, 

1,392  84.1 

Lakeville, 

147  47.0 

Needham, 

1,757  15.8 

Lancaster,     . 

569  33.1 

New  Ashford. 

. 

Tjanesborough, 

16  66.8 

New  Bedford, 

.      21,623  09.4 

Lawrence,  . 

2,039  48.0 

New  Braintree, 

152  25.6 

Lee,      . 

443  72.5 

New  Marlborough, 

. 

Leicester, 

2,034  59.0 

New  Salem,  . 

1  50.4 

Lenox, 

1,177  12.7 

Newbury, 

522  22.9 

Leominster,  . 

1,413  04.2 

Newburyport, 

3.309  30.2 

Leverett, 

48  80.1 

Newton, 

35,921  43.1 

Lexington,     . 

5,155  61.0 

Norfolk, 

67  40.1 

Ley den, 

20  82.5 

North  Adams, 

575  03.2 

Lincoln, 

3,147  33.3 

North  Andover, 

4.239  45.6 

Littleton,       . 

378  48.7 

North  Attleborough. 

1,121  91.6 

Longmeadow, 

890  76.2 

North  Brookfield,  . 

946  17.8 

Lowell, 

.      24.974  35.7 

North  Reading, 

32  86.0 

Ludlow, 

18  79.0 

Northampton, 

2.660  46.8 

Lunenburg,  . 

30  70.5 

Northborough, 

334  49.0 

Lynn,  . 

3,912  38.5 

Northbridge, 

7,082  26.5 

Lynnfield,      . 

15  30.7 

Northfield,    . 

907  57.0 

Norton, 

94.0 

Malden, 

4,760  42.1 

Norwell, 

1,312  95.3 

Manchester,  . 

9,768  52.3 

Norwood, 

387  74.5 

Mansfield,      . 

167  41.1 

Marblehead, 

1,772  45.1 

Oak  Bluffs,    . 

10  49.7 

Marion, 

726  25.5 

Oakham, 

4  39.2 

Marlborough, 

775  92.1 

Orange, 

123  36.8 

Marshfield,    . 

1,154  52.8 

Orleans, 

607  67.0 

Mashpee, 

. 

Otis,     . 

- 

Mattapoisett, 

1,542  45.7 

Oxford, 

992  12.4 

Maynard, 

159  95.7 

Medfield,        . 

2.647  04.0 

Palmer, 

250  80.8 

Medford,      . 

.       10.734  10.6 

Paxton, 

- 

Medway, 

39  49.4 

Peabody, 

782  29.9 

Melrose, 

2.546  24.9 

Pelham, 

1  46.4 

Mendon, 

24  04.4 

Pembroke,     . 

244  21.8 

Merrimac,      . 

73  97.0 

Pepperell,      . 

468  92.8 

Methuen, 

228  69.7 

Peru,    .           .           .           . 

~ 

99 


Railroad,  Telephone  and  Telegraph  Taxes,  1907  —  Continued. 


Petersham,    .          .          .         $373  18.0 

Stoneham,     . 

$379  45.1 

Phillipston, 

12  92.6 

Stoughton,    . 

328  52.7 

PlTTSFIELD, 

6,136  41.3 

Stow,    . 

134  42.9 

Plainfield, 

78  39.1 

Sturbridge,    . 

187  75.7 

Plainville, 

22  43.6 

Sudbury, 

348  53.4 

Plymouth, 

2,506  62.5 

Sunderland,  . 

4  03.4 

Plympton, 

34  26.0 

Sutton, 

177  43.9 

Prescott, 

- 

Swampscott, 

5,928  48.3 

Princeton, 

1,346  15.3 

Swansea, 

204  19.4 

Provincetown, 

606  57.4 

Taunton, 

6,893  14.0 

QUINCY, 

2,468  95.5 

Templeton,    . 
Tewksbury,  . 

684  10.9 

87  18.7 

Randolph,     . 

2,153  77.5 

Tisbury, 

1,213  99.6 

Raynham, 

15  49.0 

Tolland, 

- 

Reading, 

734  31.3 

Topsfield,       . 

161  81.2 

Rehoboth, 

3  42.6 

Townsend,     . 

105  58.8 

Revere, 

68  32.9 

Truro, 

2  35.0 

Richmond, 

18  72.4 

Tyngsborough, 

348  77.4 

Rochester, 

95  04.0 

Tyringham,  . 

2  62.0 

Rockland, 

260  20.2 

Rockport, 

3  62.3 

Upton, 

719  36.9 

Rowe,  . 

10  20.0 

Uxbridge,      . 

2,789  88.6 

Rowley, 

22  88.6 

Royals  ton. 

271  62.3 

Wakefield,     . 

386  61.2 

Russell, 

21  96.0 

Wales, 

5  85.6 

Rutland, 

- 

Walpole, 
Waltham,     . 

353  55.8 
5,931  44.8 

Salem, 

17,040  43.7 

Ware,  . 

3,274  21.3 

Sahsbury, 

24  25.0 

Wareham,     . 

1,271  20.8 

Sandisfield, 

13.6 

Warren, 

1,296  98.3 

Sandwich, 

555  92.7 

Warwick,       . 

3  69.0 

Saugus, 

130  20.9 

Washington, 

- 

Savoy, 

- 

Watertown,  . 

1,864  86.4 

Scituate, 

1,249  36.1 

Wayland,       . 

1,279  20.6 

Seekonk, 

33  13.8 

Webster, 

6,270  23.6 

Sharon, 

602  13.4 

Wellesley,      . 

4,978  65.9 

Sheffield, 

524  45.1 

Wellfleet,       . 

59  10.0 

Shelburne, 

366  96.1 

Wendell, 

- 

Sherborn, 

233  41.9 

Wenham, 

307  04.3 

Shirley, 

64  89.6 

West  Boylston,       . 

146  67.7 

Shrewsbury, 

202  22.9 

West  Bridgewater, 

240  13.2 

Shutesbury, 

- 

West  Brookfield,    . 

345  80.7 

Somerset, 

94.0 

West  Newbury, 

160  17.4 

SOMEKVILLE, 

4,664  21.7 

West  Springfield,   . 

1,299  18.0 

South  Hadley, 

734  27.5 

West  Stockbridge, 

112  93.4 

Southampton, 

6  50.5 

West  Tisbury, 

50  18.3 

South  borough, 

3,123  33.9 

Westborough, 

591  53.7 

Southbridge, 

735  06.6 

Westfield,      . 

2,247  46.0 

Southwick,    . 

20  01.2 

Westford, 

1,241  05.7 

Spencer, 

2,093  07.1 

Westhampton, 

3  01.7 

Springfield, 

37,224  38.0 

Westminster, 

514  46.1 

Sterling, 

93  26.1 

Weston, 

6,719  29.8 

Stockbridge, 

2,461  24.2 

Westport,      . 

568  49.2 

100 


Bailroad,  Telephone  and  Telegraph  Taxes,  1907  —  Concluded. 


Westwood, 

Weymouth, 

Whately, 

Whitman, 

Wilbraham 

Williamsburg, 

Williamstown 

Wilmington, 

Winchendon, 

Winchester,  . 

Windsor, 

Winthrop,     . 


$848  95.9 

938  06.9 

22  50.6 

215  76.1 

495  17.9 

151  77.1 

344  19.9 

320-83.9 

383  47.4 

3,455  89.0 

538  02.5 

WOBURN, 

Worcester, 
Worthington, 
Wrentham,   . 

Yarmouth,    . 


Commonwealth. 


$1,589  90.6 

59,834  45.5 

4  52.6 

226  11.1 

2,257  29.1 

$1,068,393  52.3 
.    812,948  23.5 

$1,881,341  75.8 


Apportionment  of  the  State  Tax  for  1907. 


Abington $3,400 

Boxford,        ....      $1,520 

Acton, 

2,320 

Boylston, 

520 

Acushnet, 

840 

Braintree, 

6,200 

Adams, 

7,680 

Brewster, 

720 

Agawam, 

2,040 

Bridgewater, 

3,960 

Alford, 

200 

Brimfield,      . 

480 

Amesbury, 

6,480 

Brockton,    . 

40,920 

Amherst, 

4,440 

Brookfield,    . 

1,520 

Andover, 

8,000 

Brookline.      . 

112,680 

Arlington, 

12,120 

Buckland,      . 

880 

Ashburnham 

1,160 

Burlington,   . 

720 

Ashby, 

880 

Ashfield, 

720 

Cambridge,  . 

122,720 

Ashland, 

1,280 

Canton, 

4,960 

Athol, 

5,280 

Carlisle, 

520 

Attleborough 

, 

13,400 

Carver, 

1,400 

Auburn, 

1,240 

Charlemont, 

520 

Avon,  . 

1.160 

Charlton, 

1,480 

Ayer,    . 

2,320 

Chatham, 
Chelmsford,  . 

1,280 
3,760 

Barnstable, 

6,160 

Chelsea, 

30,920 

Barre,  . 

2.040 

Cheshire, 

920 

Becket. 

600 

Chester, 

800 

Bedford, 

1,480 

Chesterfield, 

360 

Belchertown 

1,080 

Chicopee,     . 

12,880 

Bellingham, 

1,000 

Chilmark, 

320 

Belmont, 

6,840 

Clarksburg,   . 

360 

Berkley, 

520 

Clinton, 

9,400 

Berlin. 

640 

Cohasset, 

7,800 

Bernardston, 

520 

Colrain, 

880 

Beverly, 

28,800 

Concord, 

7,160 

Billerica, 

2.840 

Conway, 

840 

Blackstpne, 

2,840 

Cummington, 

- 

Blandford, 

520 

Bolton, 

600 

Dalton, 

4,240 

Boston, 

1,438,800 

Dana,  . 

440 

Bourne, 

3,440 

Danvers, 

7,000 

Boxborough, 

280 

Dartmouth,  . 

4,520 

101 


Apportionment  of  the  State  Tax  for  1907  —  Continued. 


Dedham $13,520 

Harvard, 

.      $1,400 

Deerfield,       . 

1,840 

Harwich, 

1,520 

Dennis, 

1,600 

Hatfield, 

1,760 

Dighton, 

1,160 

Haverhill, 

.      33,520 

Douglas, 

1,480 

Hawley, 

200 

Dover, 

1,400 

Heath, 

200 

Dracut, 

2,520 

Hingham,      . 

5,800 

Dudley, 

1,880 

Hinsdale,       . 

760 

Dunstable,    . 

360 

Holbrook,      . 

1,760 

Duxbury, 

2.360 

Holden, 

1,920 

Holland, 

120 

East  Bridgewater, 

2,280 

Holliston. 

1,920 

East  Longmeadow, 

800 

HOLYOKE, 

.      60,800 

Eastham, 

400 

Hopedale, 

6,720 

Easthampton, 

4,800 

Hopkinton,   . 

2,040 

Easton, 

6,320 

Hubbardston, 

840 

Edgartown,  . 

1,080 

Hudson, 

4,360 

Egremont,     . 

560 

Hull,    . 

4.880 

Enfield, 

960 

Huntington, 

760 

Erving, 

1,000 

Hyde  Park,  . 

.      15.040 

Essex, 

1,380 

Everett, 

27,040 

Ipswich, 

5,040 

Fairhaven,    . 

3,520 

Kingston,      . 

2,000 

Fall  River, 

97,480 

Falmouth,     . 

9,480 

Lakeville,      . 

800 

FiTCHBURG,  . 

32,000 

Lancaster,     . 

4,160 

Florida, 

200 

Lanesborough, 

600 

Foxborough, 

2,480 

Lawrence,  . 

.      60,200 

Framingham, 

12,360 

Lee.      .          .          . 

2,600 

Franklin, 

4,160 

Leicester, 

2,760 

Freetown, 

1,080 

Lenox, 
Leominster,  . 

5,440 
.       12,160 

Gardner, 

8,480 

Leverett, 

400 

Gay  Head,    . 

40 

Lexington,    . 

7,800 

Georgetown, 

1.200 

Leyden. 

240 

Gill,      . 

520 

Lincoln, 

3,440 

Gloucester, 

25,480 

Littleton, 

1.160 

Goshen, 

200 

Longmeadow, 

1.280 

Gosnold, 

360 

Lowell, 

.      87,720 

Gi^afton, 

3,040 

Ludlow, 

3,440 

Granby, 

560 

Lunenburg,   . 

1.200 

Granville, 

520 

Lynn,  . 

.      75.520 

Great  Harrington, 

6,560 

Lynnfield, 

840 

Greenfield,     . 

8,720 

Greenwich,    . 

320 

Malden, 

.      41.440 

Groton, 

3,720 

Manchester,  . 

.       15,360 

Groveland,    . 

1,400 

Mansfield, 
Marblehead, 

3,240 
8.920 

Hadley, 

1,440 

Marion. 

1.960 

Halifax, 

440 

Marlborough, 

.      12.040 

Hamilton, 

4,200 

Marshfield,    . 

2,040 

Hampden,     . 

440 

Mashpee, 

240 

Hancock, 

360 

Mattapoisett, 

1.920 

Hanover, 

1,760 

Maynard. 

4.520 

Hanson, 

1.520 

Medfietd 

2000 

Hardwick,     . 

2,120 

Medford. 

.      25,320 

102 


Apportionment  of  the  State  Tax  for  1907  —  Continued. 


Med  way.        ....       $1,640 

Pepperell $2,720 

Melrose, 

18,000 

Peru,    . 

160 

Mendon, 

760 

Petersham, 

840 

Merrimac, 

1,480 

PhiUipston, 

320 

Methuen, 

6.400 

PlTTSFIELD, 

22.760 

Middleborough, 

5,440 

Plainfield, 

240 

Middlefield,  . 

240 

Plainvilie, 

840 

Middleton,     . 

.     880 

Plymouth, 

11,640 

Milford, 

8,240 

Plympton, 

400 

Millbury,        . 

2,880 

Prescott, 

240 

Millis,  . 

880 

Princeton, 

1,240 

Milton, 

28,360 

Provincetown, 

2.440 

Monroe, 

200 

Monson, 

2,360 

QUINCY, 

31.320 

Montague,     . 

4,960 

Monterey, 

360 

Randolph,     . 

2,800 

Montgomery, 

160 

Raynham, 

960 

Mount  Washington, 

80 

Reading, 
Rehoboth, 

5,760 
960 

Nahant, 

8,040 

Revere, 

14,720 

Nantucket,    . 

3.680 

Richmond, 

400 

Natick, 

8,200 

Rochester, 

720 

Needham, 

5,400 

Rockland. 

4,440 

New  Ashford, 

80 

Rockport. 

3.600 

New  Bedford, 

78,600 

Rowe.  . 

240 

New  Braintree, 

480 

Rowley. 

920 

New  Marlborough, 

720 

Royalston, 

680 

New  Salem,  . 

400 

Russell. 

720 

Newbury, 

1.520 

Rutland. 

840 

Newburyport, 

13.680 

Newton, 

81.560 

Salem, 

37,960 

Norfolk. 

840 

Salisbury, 

1,000 

North  Adams, 

18.640 

Sandisfield, 

400 

North  Andover, 

5.760 

Sandwich, 

1,200 

North  Attleboroug 

h. 

6,000 

Saugus, 

5,440 

North  Brookfield, 

1.960 

Savoy, 

240 

North  Reading, 

760 

Scituate, 

4.400 

Northampton, 

15.320 

Seekonk. 

1,280 

Northborough, 

1.640 

Sharon. 

2,680 

Northbridge. 

5.960 

Sheffield. 

1,280 

Northfield,     . 

1.440 

Shelburne. 

1,240 

Norton. 

1.280 

Sherborn. 

1,480 

Norwell, 

1,240 

Shirley. 

1,200 

Norwood, 

6,920 

Shrewsbury. 
Shutesbury. 

1,760 
240 

Oak  Bluffs.    . 

1.880 

Somerset. 

1.480 

Oakham, 

440 

Somerville, 

70.160 

Orange, 

4,480 

South  Hadley, 

3,400 

Orleans. 

800 

Southampton, 

600 

Otis,     . 

280 

Southborough, 

2,320 

Oxford. 

2,120 

Southbridge, 
Southwick,    . 

6,800 
760 

Palmer. 

4,480 

Spencer, 

4.880 

Paxton. 

400 

Springfield, 

103.280 

Peabody. 

11.160 

Sterling. 

1.160 

Pelham. 

240 

Stockbridge, 

4,080 

Pembroke.     . 

1.080 

Stoneham.     . 

5,880 

103 


Apportionment  of  the  State  Tax  for  1907  —  Concluded. 


Stoughton $4,320 

Wendell $280 

Stow,   . 

1,000 

Wenham, 

2,440 

Sturbridge,    . 

1,200 

West  Boylston, 

880 

Sudbury, 

1,440 

West  Bridgewater, 

1,360 

Sunderland,  . 

640 

West  Brookfield, 

1,040 

Sutton, 

1,520 

West  Newbury, 

1,280 

Swampscott, 

9,920 

West  Springfield, 

7,040 

Swansea, 

1,680 

West  Stockbridge, 
West  Tisbury, 

520 
520 

Taunton,      . 

27,880 

Westborough, 

3,760 

Templeton,    . 

2,080 

Westfield.      . 

10,800 

Tewksbury,  . 

1,160 

Westford,      . 

2,440 

Tisbury, 

1,680 

Westhampton, 

280 

Tolland, 

200 

Westminster, 

960 

Topsfield,      . 

1,240 

Weston, 

7,720 

Townsend,     . 

1,480 

Westport,      . 

2,080 

Truro, 

480 

Westwood,    . 

2,440 

Tyngsborough, 

640 

Weymouth,  . 

8,480 

Tyringham,  . 

320 

Whately,       . 
Whitman,      . 

560 
5,200 

Upton, 

1,320 

Wilbraham,  , 

1,240 

Uxbridge, 

3,400 

Williamsburg, 
Williamstown, 

1,160 
3,560 

Wakefield,     . 

10,040 

Wilmington, 

1.620 

Wales, 

360 

Winchendon, 

4,040 

Walpole, 

4,440 

Winchester,  . 

13,160 

Waltham,     . 

28,400 

Windsor, 

320 

Ware,  . 

5,640 

Winthrop,     . 

10,720 

Wareham, 

4,280 

WOBURN, 

12,660 

Warren, 

2,400 

Worcester, 

150,120 

Warwick,       . 

400 

Worthington, 

360 

Washington, 

320 

Wrentham,   . 

1,200 

Watertown,  . 

14,720 

Wayland,      . 

2,440 

Yarmouth 2,320 

Webster. 

9,680 

- 

Wellesley,      . 

14,440 

$4,032,900 

Wellfleet,       . 

1,200 

Appendix  J. 

Table  showing  the  Distribution  of  the  Entire  Corporate 
Franchise  Tax  for  1907. 


Abington, 

$415  38 

Andover,            .          .          .     $13,911  65 

Acton, 

2,728  60 

Arlington, 

7,193  26 

Acushnet, 

718  01 

Ashburnham, 

345  61 

Adams,    . 

.       11,160  56 

Ashby,     . 

1,957  80 

Agawam, 

936  52 

Ashfield, 

57  06 

Alford,     . 

- 

Ashland, 

414  54 

Amesbury, 

2,869  92 

Athol,       . 

3,198  24 

Amherst, 

2,081  80 

Attleborough, 

3,678  50 

104 


Table  showing  the  Distribution  of  the  Entire  Corporate 
Franchise  Tax  for  1907 — Continued. 


'.■■£.m 

Auburn,  ....         $180  30 

Dalton,    . 

$9,577  56 

Avon, 

264  33 

Dana,       . 

30  68 

Ayer, 

655  50 

Dan  vers, 
Dartmouth, 

5,177  98 
6,844  47 

Barnstable, 

8,367  63 

Dedham, 

17,323  21 

Barre, 

1,144  55 

Deerfield, 

962  90 

Becket,    . 

141  44 

Dennis,    . 

1,148  20 

Bedford, 

1,709  36 

Dighton, 

169  92 

Belchertown,    . 

48  89 

Douglas, 

818  67 

Bellingham, 

705  22 

Dover, 

3,922  92 

Belmont, 

8,320  54 

Dracut,    .           .          . 

93  24 

Berkley.  . 

135  08 

Dudley,    . 

244  99 

Berlin,     . 

34  99 

Dunstable, 

371  88 

Bemardston,     . 

434  47 

Duxbury, 

1,985  23 

Beverly, 

35,042  62 

Billerica, 

5,632  85 

East  Bridgewater, 

2,050  35 

Blackstone, 

134  07 

East  Longmeadow,    . 

8  97 

Blandford, 

172  30 

Eastham, 

143  78 

Bolton,    . 

36  28 

Easthampton,  . 

3,436  10 

Boston,  . 

980,307  72 

Easton,    . 

10,360  12 

Bourne,    . 

5,063  99 

Edgartown, 

602  23 

Boxborough, 

17  77 

Egremont, 

241  05 

Boxford, 

4,330  52 

Enfield,    . 

1,638  93 

Boylston, 

14  83 

Erving,    . 

25  70 

Braintree, 

5,170  38 

Essex,      . 

357  93 

Brewster, 

464  80 

Everett, 

9,064  74 

Bridgewater, 

1,833  68 

Brimfield, 

90  17 

Fairhaven, 

2,417  47 

Bkockton, 

39,783  94 

Fall  River,    . 

58,740  04 

Brookfield, 

701  09 

Falmouth, 

23,521  25 

Brookline, 

202,472  29 

Fitch  burg. 

34,640  17 

Buckland, 

75  41 

Florida.   . 

- 

Burlington, 

80  70 

Foxborough,     . 
Framingham,    . 

247  36 
.       19,633  47 

Cambridge, 

80,312  22 

Franklin, 

1,667  .11 

Canton,    . 

6,641  78 

Freetown, 

571  80 

CarUsle,   . 

11  99 

Carver,     . 

100  83 

Gardner, 

3,323  97 

Charlemont, 

36  06 

Gay  Head, 

- 

Charlton, 

149  55 

Georgetown.     . 

215  55 

Chatham, 

241  51 

Gill, 

24  18 

Chelmsford, 

948  96 

Gloucester,    . 

.      11,031  44 

Chelsea,'] 

9,846  59 

Goshen,    . 

2  39 

Cheshire, 

344  44 

Gosnold, 

465  77 

Chester,   . 

205  67 

Grafton,  . 

1,990  70 

Chesterfield, 

4  99 

Granby,  . 

122  91 

Chicopee, 

13,497  48 

Granville, 

132  79 

Chilmark, 

26  20 

Great  Barrington, 

7,811  48 

Clarksburg, 

- 

Greenfield, 

.       13,448  75 

Clinton,    . 

3.476  61 

Greenwich, 

3  77 

Cohasset, 

9,094  19 

Groton,    . 

7,646  72 

Colrain,    . 

787  49 

Groveland, 

95  42 

Concord, 

.       12,250  78 

Conway,  . 

144  70 

Hadley,    . 

201  02 

Cummington, 

15  80 

Halifax,  . 

171  31 

105 


Table  showing  the  Distribution  of  the  Entiee  Corporate 
Franchise  Tax  for  1907  —  Continued. 


Hamilton, 

.       $6,361   16 

Marion,    ....       $3,594  87 

Hampden, 

10  38 

Marlborough, 

7,003  34 

Hancock, 

114  90 

Marshfield, 

1,303  66 

Hanover, 

1,351  19 

Mashpee, 

- 

Hanson,  . 

358  33 

Mattapoisett, 

3.330  79 

Hardwick, 

678  44 

Maynard, 

357  44 

Harvard, 

1,834  28 

Medfield, 

2,961  97 

Harwich, 

779  88 

Medford, 

17,011   15 

Hatfield, 

353  14 

Medway, 

122  65 

Havekhill, 

.      22.000  08 

Melrose, 

10,385  89 

Hawley,  . 

3  53 

Mendon, 

37  48 

Heath,     . 

27  20 

Merrimac, 

1,155  85 

Hingham, 

9,666  30 

Methuen, 

3,904  31 

Hinsdale, 

354  39 

Middleborough 

4,187  53 

Holbrook, 

675  92 

Middlefield, 

45  44 

Holden,    . 

2,924  43 

Middleton, 

17  97 

Holland, 

2  92 

Milford,    . 

2,820  37 

HoUiston, 

833  13 

MiUbury, 

839  28 

HOLYOKE, 

.      51.212  50 

Millis,       . 

217  28 

Hopedale, 

13,011  78 

Milton,     . 

77,785  93 

Hopkinton, 

1,344  37 

Monroe,   . 

74  47 

Hubbardston,  . 

149  66 

Monson,  . 

3,685  30 

Hudson,  . 

2,541  74 

Montague, 

1,011  35 

Hull, 

330  64 

Monterey, 

167  88 

Huntington, 

42  12 

Montgomery, 

- 

Hyde  Park,       . 

6,506  09 

Mt.  Washington, 

- 

Ipswich,  . 

3,854  11 

Nahant,  . 
Nantucket, 

24,922  68 
2,010  03 

Kingston, 

3,151  12 

Natick,    . 
Needham, 

4,686  22 
5,722  18 

Lakeville, 

168  53 

New  Ashford,   . 

- 

Lancaster, 

6,247  36 

New  Bedford, 

78,825  64 

Lanesborough, 

16  66 

New  Braintree, 

152  25 

Lawrence, 

21,816  60 

New  Marlborough, 

33  89 

Lee, 

2,311  59 

New  Salem,       . 

1  50 

Leicester, 

3,525  62 

Newbury, 

590  81 

Lenox, 

2,763  93 

Newburyport, 

12,938  71 

Leominster, 

.       11,225  24 

Newton, 

131,182  71 

Leverett, 

.    ,      .             48  80 

Norfolk,  . 

100  11 

Lexington, 

15,167  98 

North  Adams, 

33,989  63 

Leyden,   . 

21  06 

North  Andover, 

10,623  74 

Lincoln,  . 

6,598  24 

North  Attleborough, 

1,804  27 

Littleton, 

476  31 

North  Brookfield, 

1,930  45 

Longmeadow,   . 

1,760  55 

North  Reading, 

35  59 

Lowell, 

.      61,237  39 

Northampton, 

9,325  94 

Ludlow,  . 

313  41 

Northborough, 

413  38 

Lunenburg, 

654  07 

Northbridge,     . 

.      23,019  00 

Lynn, 

.      41,865  95 

Northfield, 

1,035  41 

Lynnfield, 

273  09 

Norton,    . 
Norwell,  . 

218  05 
3,010  31 

Malden, 

.      33,448  11 

Norwood, 

7,733  66 

Manchester, 

.      37,191  93 

Mansfield, 

2,106  28 

Oak  Bluffs,        . 

110  40 

Marblehead, 

.      13,630  93 

Oakham, 

14  07 

106 


Table  showing  the  Distribution  of  the  Entire  Corporate 
Franchise  Tax  for  1907  —  Continued. 


Orange,    . 

.       $4,831  39 

Somerset, 

$248  83 

Orleans,  . 

685  78 

SOMEKVILLE,       . 

.      21,551  43 

Otis, 

19 

South  Hadley, 

3,517  87 

Oxford,    . 

2,133  39 

Southampton,  . 

22  00 

Southborough, 

6,381  82 

Palmer,    . 

782  04 

Southbridge,     . 

7,726  50 

Paxton,    . 

6'  43 

Southwick, 

64  34 

Peabody, 

5,616  86 

Spencer,  . 

.       10,429  70 

Pelham,   . 

51  75 

Springfield,    . 

.     120,685  34 

Pembroke, 

370  23 

Sterling,  . 

310  06 

Pepperell, 

1,369  06 

Stockbridge, 

3,790  91 

Peru, 

. 

Stoneham, 

1,300  19 

Petersham, 

654  88 

Stoughton, 

914  81 

Phillipston, 

26  54 

Stow, 

160  05 

PiTTSFIELD, 

.      15,031  62 

Sturbridge, 

225  72 

Plainfield, 

78  52 

Sudbury, 

436  25 

Plainville, 

30  37 

Sunderland, 

13  99 

Plymouth, 

7,854  30 

Sutton,    . 

386  41 

Plympton, 

110  93 

Swampscott,     . 

.       13.262  82 

Prescott, 

- 

Swansea, 

3,944  56 

Princeton, 

1,786  77 

Provincetown, 

703  12 

Taunton, 

.      29.730  32 

Templeton, 

1,039  70 

QUINCY,    . 

.      11,733  32 

Tewksbury,       . 

275  94 

Tisbury,  . 

2,561  74 

Randolph, 

2,974  16 

Tolland,  . 

- 

Raynham, 

162  65 

Topsfield, 

1,933  29 

Reading, 

3,802  56 

Townsend, 

1,837  72 

Rehoboth, 

64  04 

Truro,      . 

73  47 

Revere,    . 

586  36 

Tyngsborough, 

486  06 

Richmond, 

28  26 

Tyringham, 

2  62 

Rochester, 

167  80 

Rockland, 

3,525  11 

Upton,     . 

787  68 

Rockport, 

662  14 

Uxbridge, 

4,374  82 

Rowe,       . 

11  90 

Rowley,   . 

189  34 

Wakefield, 

7,531  98 

Royalston, 

629  72 

Wales 

21  00 

Russell,    . 

21  96 

Walpole, 

563  21 

Rutland, 

6  36 

Waltham, 

23,313  70 

Ware,       .           ... 

5,691  90 

Salem,     . 

.      41,323  47 

Wareham, 

3,930  66 

Salisbury, 

31  40 

Warren 

2,025  72 

Sandisfield, 

13 

Warwick, 

3  69 

Sandwich, 

620  89 

Washington, 

- 

Saugus,    . 

626  75 

Watertown, 

9,470  22 

Savoy, 

. 

Wayland, 

2,078  99 

Scituate, 

1,473  99 

Webster, 

35,165  83 

Seekonk, 

39  26 

Wellesley, 

16,418  01 

Sharon,    . 

1,612  72 

Wellfleet, 

120  38 

Sheffield, 

856  77 

Wendell, 

- 

Shelburne, 

554  48 

Wenham, 

1,260  19 

Sherborn, 

704  02 

West  Boylston, 

235  84 

Shirley,    . 

1,270  10 

West  Bridgewater,     . 

358  64 

Shrewsbury, 

3,687  96 

West  Brookfield, 

1,094  69 

Shutesbury, 

~ 

West  Newbury, 

428  63 

107 


Table  showing  the  Distribution  of  the  Entire  Corporate 
Franchise  Tax  for  1907  —  Concluded. 


West  Springfield, 

$3,676  41 

Wilmington,      .          .          .       $1,793  05 

West  Stockbridge,     . 

231 

05 

Winchendon, 

4,473  15 

West  Tisbury,  . 

130 

76 

Winchester, 

19,530  18 

Westborough,   . 

1,995 

53 

Windsor, 

- 

Westfield, 

9,785 

66 

Winthrop, 

3,988  03 

Westford, 

8,761 

93 

WOBCRN, 

4,439  72 

Westhampton, 

19 

39 

Worcester, 

176,252  08 

Westminster,    . 

562 

49 

Worthington, 

7  24 

Weston,   . 

23,075 

69 

Wrentham. 

328  80 

Westport, 

1,576 

68 

Westwood. 
Weymouth, 

2,402 
2,904 

58 
62 

Yarmouth,        .          .                  3,603  99 

Whately, 

22 

85 

$3,383,511  64 

Whitman, 
Wilbraham,       . 

641 
597 

92 
13 

Commonwealth,       .           1.412.552  70 

Williamsburg,  . 

609  20 

$4,796,064  34 

Williamstowh. 

751 

80 

Appendix  K. 

Table  showing  the  Amount  of  Corporate  Franchise  Tax  paid 
BY  Business  Corporations  in  Certain  Cities  and  Towns,, 
together  with  the  Amount  of  Such  Tax  returned  to 
the  Same  Cities  and  Towns. 

[Note.  —  The  figures  in  the  first  column  are  exact,  being  the  amount  of  corpora- 
tion taxes  credited  to  the  several  towns  in  1907,  less  the  railroad,  telephone  and 
telegraph  taxes.  The  figures  in  the  second  column  are  the  corporate  franchise 
taxes  of  the  corporations  located  in  the  several  cities  and  towns  returned  by  the 
assessors  of  those  cities  and  towns.  Owing  to  the  shortness  of  the  time  at  our  dis- 
posal, it  has  been  impossible  to  verify  all  of  these  returns,  but  the  figures,  as  given, 
are  substantially  accurate  ] 


City  or  Town. 

Corporate  Fran- 
chise Tax  (exclusive 
of  Railroad  and 

Telephone 

and  Telegraph 

Companies) 

distributed  locally. 

Franchise  Taxes 

paid  by  Corporation*. 

other  than  Railroads 

and  Telephone  and 

Telegraph,  located  in 

Certain  Cities  and 

Towns. 

Acton, 

Agawam, 

Andover, 

Arlington, 

Ashby,     . 

Barnstable, 

$2,233  11 
522  66 
8,682  47 
4,582  96 
1,600  85 
5,209  45 

$2,043  65 
1,598  90 

24,094  44 
1,127  29 

94  61 

Bedford,  . 
Berlin,      . 

1,377  30 

- 

108 


Table  showing  Amount  of  Corporate  Franchise  Tax,  etc.  — 

Continued. 


City  oe  Town. 


Corporate  Fran- 
chise Tax  (exclusive 
of  Railroad  and 

Telephone 

and  Telegraph 

Companies) 

distributed  locally. 


Franchise  Taxes 
paid  by  Corporations 
Other  tlian  Railroads 
and  Telephone  and 
Telegraph,  located  in 
■■    Certain  Cities  and 
Towns. 


Beverly,  ..... 

$25,308  63 

$5,153  60 

Billerica, 

3,896  48 

3,281  00 

Boston,    . 

615,235  48 

1,555,602  57 

Bourne,    . 

3,896  29 

3,506  86 

Boylston, 

5  73 

- 

Brockton, 

38,492  81 

43,648  75 

Brookline, 

146,030  50 

852  25 

Canton,    . 

4,717  09 

7,402  51 

Cheshire, 

338  99 

279  51 

Cohasset, 

2,826  83 

144  46 

Concord,  . 

5,851  59 

3,460  88 

Dalton,    . 

3,865  34 

1,653  24 

Dedham, 

11,872  55 

209  24 

Dover, 

1,481  06 

- 

Dunstable, 

53  69 

- 

Easton,    . 

8,807  79 

88  55 

Enfield,    . 

843  79 

755  11 

Everett,  . 

8,244  01 

1,116  72 

Fairhaven, 

1,407  44 

92  30 

Fall  River, 

56,870  64 

104,917  57 

Falmouth, 

15,282  72 

- 

Framingham, 

15,463  89 

28,059  72 

Freetown, 

379  48 

107  11 

Greenfield, 

11,495  50 

7,973  07 

Hamilton, 

5,114  71 

- 

Hanover, 

304  34 

3,062  72 

Harvard, 

840  38 

- 

Holyoke, 

37,803  05 

47,503  21 

Hudson,  . 

2,382  53 

12,140  13 

Ipswich,  . 

2,246  01 

483  64 

Kingston, 

1,003  97 

1,036  83 

Lakeville, 

21  06 

- 

Lancaster, 

5,678  03 

Lawrence, 

19,777  12 

172,105  92 

Leicester, 

1,491  04 

1,180  75 

Lexington, 

10,012  37 

565  73 

Lowell,     . 

36,263  04 

77,203  38 

Lynn, 

37,953  58 

45,353  47 

Manchester, 

27,423  42 

- 

Mansfield, 

1,938  88 

808  95 

Marblehead, 

11,858  49 

6,834  04 

Marion,    . 

2,868  62 

13  62 

Medford, 

6,277  05 

917  72 

Merrimac, 

• 

1.081  89 

370  82 

109 


Table  showing  Amount  of  Corporate  Franchise  Tax,  etc. 

Concluded. 


Corporate  Fran- 

Franchise Taxes 

chise  Tax  (exclusive 

paid  by  Corporations 

of  Railroad  and 

Other  than  Railroads 

City  or  Town. 

Telephone 

and  Telephone  and 

and  Telegraph 

Telegraph,  located  in 

Companies) 

Certain  Cities  and 

distributed  locally. 

Towns. 

Milton,     ..... 

$49,263  85 

$1,975  00 

Montague, 

755  66 

5,610  68 

Nahant,   . 

12,259  55 

- 

Needham, 

3,965  03 

1,215  94 

New  Bedford,   . 

57,194  55 

104,642  46 

Newbury, 

68  59 

- 

Newton,  . 

95,261  29 

5,485  44 

North  Adams,  . 

33,414  60 

36,014  22 

Northborough, 

78  90 

114  95 

Northbridge,     . 

15,936  75 

8,123  58 

Norwell,  . 

1,697  36 

144  46 

Norwood, 

7,345  92 

7,306  76 

Pittsfield, 

9,895  22 

11,839  11 

Plymouth, 

2,347  69 

8,561  62 

Randolph, 

820  40 

13  62 

Rockport, 

658  53 

1,842  37 

Royalston, 

358  11 

153  27 

Shrewsbury, 

3,485  74 

2,218  07 

South  Hadley,  . 

2,783  61 

6,336  61 

Springfield, 

83,460  97 

124,746  58 

Swansea, 

3,740  37 

- 

Wareham, 

2,659  46 

743  36 

Watertown, 

7,605  37 

17,864  16 

Webster, 

28,895  60 

30,917  99 

Wellesley, 

11,439  45 

544  21 

West  Springfield, 

2,377  24 

6,961  04 

Westford, 

7,520  88 

2,386  70 

Weston,   . 

16,356  40 

994  55 

Wilmington, 

1,472  22 

4,881  56 

Winchester, 

. 

16,074  30 

1,016  59 

Worcester, 

116,217  63 

147,724  90 

110 


Appendix  L. 

Statistics  of  Municipal  Debts  and  Taxes. 

I.     Table  showing  the  Net  Indebtedness  of  Municipalities  in 
Massachusetts. 


Year. 

j Aggregate  Valuation. 

Aggregate  Net 
Debt. 

Percentage. 

1871,   .     .     .     . 

$1,497,351,686 

$39,421,298 

.026 

1872, 

1,696,599,969 

45,221,745 

.026 

1873, 

1,763,429,990 

53,380,118 

.030 

1874, 

1,831,601,165 

64,904,069 

.035 

1875, 

1,840,792,728 

71,784,006 

.038 

1876, 

1,769,359,431 

72,165,156 

.040 

1877, 

1,668,226,972 

72,049,685 

.043 

1878, 

1,568,988,210 

68,864,685 

.043 

1879, 

1,529,521,014 

67,728,557 

.044 

1880, 

1,584,756,802 

68,512,929 

.043 

1881, 

1,648,239,976 

65,408,691 

.039 

1882, 

1,684,213,423 

62,782,507 

.037 

1883, 

1,731,297,061 

63,413,128 

.036 

1884, 

1,756,879,778 

63,595,568 

.036 

1885, 

1,782,349,143 

63,306,213 

.035 

1886, 

1,847,531,422 

63,585,220 

.034 

1887, 

1,932,548,807 

64,675,061 

.033 

1888, 

1,992,804,101 

65,586,603 

.032 

1889, 

2,072,170,872 

66,502,030 

.032 

1890, 

2,154,134,626 

70,742,786 

.032 

1891, 

2,245,042,273 

73,066,660 

.032 

1892, 

2,333,025,090 

76,483,323 

.032 

1893, 

2,428,339,029 

80,125,652 

.032 

1894, 

2,471,521,505 

87,786,918 

.035 

1895, 

2,542,348,993 

98,511,920 

.038 

1896, 

2,622,520,278 

104,702,875 

.039 

1897, 

2,702,328,054 

115,798,889 

.042 

1898, 

2,764,242,784 

121,385,139 

.043 

1899, 

2,876,021,222 

128,051,487 

.044 

1900, 

2,961,119,947 

131,016,743 

.044 

1901, 

3,033,884,001 

126,189,227 

.041 

1902,   . 

3,115,426,287 

128,477,581 

.041 

1903,   . 

3,200,101,482 

135,906,382 

.042 

1904, 

3,251,804,634 

141,660,675 

.043 

1905,   . 

3,312,255,163 

147,509,003 

.044 

1906,   .... 

3,404,893,165 

150,998,898 

.044 

The  gross  interest-bearing  debt  of  municipalities  of  the  State 
was  $212,951,718  on  the  first  day  of  May,  1906. 

If  we  assume  the  rate  of  interest  to  average  3V2  per  cent., 
which  is  a  safe  average,  the  amount  raised  by  taxation  for 
interest  alone  in  1906  was  $7^453,310. 

The  aggregate  net  debt  of  the  municipalities  of  the  State  for 


Ill 


1905  was  $147,509,003,  and  for  1906  $150,998,898,  showing  an 
increase  of  $3,489,895. 


II.     Table  showing  the  Taxes  levied  on  Polls  and  Property  in 
Massachusetts,  1861-1901. 


Year. 

Total. 

state  Tax. 

County,  Town 
and  City  Taxes. 

1861,  .     .     .     . 

$7,600,501 

$300,372 

$7,300,129 

1862,  . 

8,605,511 

1,797,516 

6,807,995 

1863,  . 

10,599,097 

2,396,568 

8,202,529 

1864,  . 

12,876,850 

2,396,463 

10,480,387 

1865,  . 

16,800,332 

4,700,000 

12,100,332 

1866,  . 

15,694,039 

3,000,000 

12,694,039 

1867,  . 

19,104,074 

5,000,000 

14,104,074 

1868,  . 

16,056,193 

2,000,000 

14,056,193 

1869,  . 

20,007,863 

2,500,000 

17,507,863 

1870,  . 

21,922,569 

2,500,000 

19,422,569 

1871,  . 

22,063,946 

2,500,000 

19,563,946 

1872,  . 

22,911,883 

2,000,000 

20,911,883 

1873,  . 

25,153,399 

2,250,000 

22,903,399 

1874,  . 

28,700,605 

2,000,000 

26,700,605 

1875,  . 

27,712,760 

2,000,000 

25,712,760 

1876,  . 

24,778,803 

1,800,000 

22,978,803 

1877,  . 

23,916,939 

1,500,000 

22,416,939 

1878,  . 

21,186,737 

1,000,000 

20,186,737 

1879,  . 

21,012,833 

500,000 

20,512,833 

1880,  . 

24,326,612 

1,500,000 

22,826,612 

1881,  . 

24,180,245 

1,500,000 

22,680,245 

1882,  . 

26,090,914 

2,000,000 

24,090,914 

1883,  . 

26,323,432 

1,500,000 

24,823,432 

1884,  . 

28,653,549 

2,000,000 

26,653,549 

1885,  . 

25,850,317 

1,500,000 

24,350,317 

1886,  . 

26,701,437 

1,500,000 

25,201,437 

1887,  . 

28,831,837 

2,250,000 

26,581,837 

1888,  . 

29,379,674 

2,250,000 

27,129,674 

1889,  . 

30,216,650 

2,000,000 

28,216,650 

1890,  . 

31,503,666 

1,750,000 

29,753,666 

1891,  . 

32,242,721 

1,500,000 

30,742,721 

1892,  . 

34,465,969 

1,750,000 

32,715,969 

1893,  . 

36,397,292 

2,500,000 

33,897,292 

1894,  . 

36,914,205 

2,000,000 

34,914,205 

1895,  . 

38,084,609 

1,500,000 

36,584,609 

1896,  . 

39,954,339 

1,750,000 

38,204,339 

1897,  . 

41,593,555 

1,750,000 

39,843,555 

1898,  . 

43,792,378 

1,500,000 

42,292,378 

1899,  . 

45,038,672 

1,500,000 

43,538,672 

1900,  . 

47,914,058 

1,500,000 

46,414,058 

1901,  . 

49,403,016 

1,750,000 

47,653,016 

1902,  . 

50,827,713 

1,500,000 

49,327,713 

1903,  . 

52,839,917 

2,500,000 

50,339,917 

1904,  . 

54,348,769 

2,500,000 

51,848,769 

1905,  . 

57,476,660 

4,000,000 

53,476,660 

1906,  .... 

57,893,335 

3,500,000 ' 

54,393,335 

*  Eleven  months. 


CODIFICATION   OF  LAWS 


RELATING   TO 


TAXATION, 


LAWS  EEGULATING  TAXATION. 


CHAPTER      . 

Part  I. 

ASSESSMENT   OF   TAXES. 
PERSONS   AND   PROPEKTY    LIABLE   TO    TAXATION. 

Section  1.    A  poll  tax  of  two  dollars  shall  be  assessed  j^ct^tol^pcSi 
on  every  male  inhabitant  of  the  commonwealth  above  the  J^x^  ^^ 
age  of  twenty  years,  whether  a  citizen  of  the  United  States  Jf^^'i^]-/  2- 
or  an  alien.  1843. 87.  1844, 145.  g.  s.  11,  §  1. 

p.  S.  11,§1.  R.  L.  12,  §  1.  4Met.  I8L 

1901,424,  §1.  7  Mass.  523.  5  Met.  594. 

Section   2.     All   property   real   and   personal   situated  Property  sub; 
within  the  commonwealth,   and  all  personal  property  of  tion. 
the  inhabitants  of  the  commonwealth  wherever  situated,  issoj  151,  §  2. 
unless   expressly   exempted   by    law,    shall   be    subject   to  G.'i.'ii,^§^2. 
taxation.  p.  s.  11,  §  2.  r.  l.  12,  §  2.  4  Met.  564. 

4  Gush.  12.  16  Gray,  293.  101  Mass.  317.  193  Mass.  274. 

4  Gray,  500.  6  Allen,  559.  106  Mass.  540.  199  U.  S.  194. 

Section  3.  Eeal  estate  for  the  purpose  of  taxation  Real  estate, 
shall  include  not  only  all  land  within  the  commonwealth  G.'i.'ii,\^3. 
but  also  all  buildings  and  other  things  erected  on  or  affixed  r.  l/i2,^§  3. 

to  the  same.  22  Pick.  22.  10  Cush.  514.  -lOl  Mass.  328. 

102  Mass.  79.  125  Mass.  567.  147  Mass.  33.  153  Mass.  141. 

118  Mass.  386.  130  Mass.  428.  149  Mass.  238.  189  Mass.  182. 

Section   4.     Personal   estate  for  the   purpose   of  tax-  Personal 
ation  shall  include: —  i8?i,^io7 


First,    Goods,    chattels,    money    and    effects,    wherever  ^  s 


2. 
1830,  151,  §  2. 


they  are ;  ships  and  vessels  at  home  or  abroad,  except  as  Jflg'  Jfg;  ^  ^• 
provided  in  section  seven.  '        pg^|-  ]^^^^  ^• 

Second,    Money   at   interest,    and   other   debts   due   the  gof^l^l^'  ^  ^' 
person  to  be  taxed  more  than  he  is  indebted  or  pays  in-  P-  s.  ii,  §  4. 
terest  for;  but  not  including  in  such  debts  due  him  or  i888;363. 
indebtedness  from  him  any  loan  on  mortgage  of  real  es-  i902,'  374,  §  4. 
tate,  taxable  as  real  estate,  except  the  excess  of  such  loan  i6Pick^435, 
above  the  assessed  value  of  the  mortgaged  real  estate.  g^Met.  73, 199. 


116 


10  Cush.  128. 

10  Allen,  100. 

11  Allen,  309. 
14  Allen,  359, 
366. 

103  Mass.  544, 

105  Mass.  526. 

106  Mass.  540. 

136  Mass.  129. 

137  Mass.  111. 

138  Mass.  414. 

139  Mass.  559. 
147  Mass.  430. 

193  Mass.  190. 

194  Mass.  44. 


Third,  Public  stocks  and  securities,  except  as  provided 
in  clause  fifteenth  of  section  five,  bonds  of  railroads  and 
street  railways,  stocks  in  turnpikes,  bridges  and  moneyed 
corporations  within  or  without  this  commonwealth,  except 
as  provided  in  section  sixty-four  of  Part  III. 

Fourth,  The  income  from  an  annuity,  and  the  excess 
above  two  thousand  dollars  of  the  income  from  a  profes- 
sion, trade  or  employment  accruing  to  the  person  to  be 
taxed  during  the  year  ending  on  the  first  day  of  May  of 
the  year  in  which  the  tax  is  assessed.  Incomes  derived 
from  property  subject  to  taxation  shall  not  be  taxed. 


Exemptions. 
R.  S.  7,  §  5. 
G.  S.  11,  §  5. 
P.  S.  11,  §5. 


Property  of  the 
United  States. 

—  of  the  com- 
monwealth. 
R.  S.  7.  §  5. 
cl.l. 
1853,  122. 


—  of  chari- 
table, etc.,  in- 
stitutions. 
1830,  151,  §  6. 
R.  S.  7,  §  5, 
cl.  2. 

G.  S.  11.  §  5, 
cl.  3. 

1874,  375,  §  8. 
1878, 214. 
P.  S.  11,  §  5, 
cl.  3. 

1882,  217,  §  2. 
1886,  231. 

1888,  158. 

1889,  465. 
R.  L.  12,  §  5, 
cl.  3. 

2  Cush.  611. 
12  Cush.  54. 
99  Mass.  599. 
101  Mass.  319. 
104  Mass.  470, 
481. 

113  Mass.  518. 

114  Mass.  337. 
116  Mass.  181, 
188 

118'Mass.  164, 
362. 


PERSONS    AND    PROPERTY    EXEMPT    FROM    TAXATION. 

Section  5.    The  following  property  and  polls  shall  be 
exempted  from  taxation :  — 


R.  L.  12,  §  5. 
4  Met.  564. 
8  Cush.  237. 


4  Gray,  500. 
1  Allen,  199. 
12  Allen,  75. 


116  Mass.  193. 
170  Mass.  160. 
7  Wallace,  16. 


First,  The  property  of  the  United  States. 

R.  S.  7,  §  5,  cl.  1.        G.  S.  11,  §  5,  cl.  1.        P.  S.  11,  §  5,  cl.  1.       R.  L.  12.  §  5,  cl.  1. 

Second,  The  property  of  the  commonwealth,  except  real 
estate  of  which  the  commonwealth  is  in  possession  under 
a  mortgage  for  condition  broken. 


G.  S.  11,  §  6,  cl.  2. 
1867,  101. 


p.  S.  11,  §5,  cl.  2. 
R.  L.  12,  §  5,  cl.  2. 


153  Mass.  141. 
185  Mass.  325. 


Third,  The  personal  property  of  literary,  benevolent, 
charitable  and  scientific  institutions  and  of  temperance 
societies  incorporated  within  this  commonwealth,  the  real 
estate  owned  and  occupied  by  them  or  their  officers  for 
the  purposes  for  which  they  are  incorporated,  and  real 
estate  purchased  by  them  with  the  purpose  of  removal 
thereto,  until. such  removal,  but  not  for  more  than  two 
years  after  such  purchase.  Such  real  or  personal  prop- 
erty shall  not  be  exempt  if  any  of  the  income  or  profits 
of  the  business  of  such  corporation  is  divided  among 
the  stockholders  or  members,  or  is  used  or  appropriated 
for  other  than  literary,  educational,  benevolent,  charitable, 
scientific  or  religious  purposes,  nor  shall  it  be  exempt  for 
any  year  in  which  such  corporation  wilfully  omits  to  bring 
in  to  the  assessors  the  list  and  statement  required  by  sec- 
tion forty-one.  120  Mass.  212.  129  Mass.  178.  136  Mass.  285. 
142  Mass.  24.  154  Mass.  15.  172  Mass.  60.  182  Mass.  457. 
145  Mass.  Ill,  139.  155  Mass.  329.  173  Mass.  232.  185 Mass. 310, 414. 
147  Mass.  396,  427.  160  Mass.  409.  174  Mass.  144.  188  Mass.  409. 
153  Mass.  85.                  167  Mass.  505.     175  Mass.  118,  145,  293.      193  Mass.  168. 


117 

Fourth,   The  real  and  personal  estate  of  incorporated  ^J-cuuXrai 
agricultural  societies  and  the  portions  of  real  estate  and  il^gi^J^^*^®^- 
buildings  of  incorporated  horticultural  societies  used  for  g.  s.'ii,§5. 
their  offices,  libraries  and  exhibitions.         p.  s.  ii,  §  5,  ci.  9. 

1884,  176.  R.  L.  12,  §  5,  cl.  4.  116  Mass.  189,  191. 

Fifth,  The  real  and  personal  estate  of  any  grand  army  —of grand 

\  1         •  1  •       ii  •  army  and  vet- 

or  veteran  association,  incorporated  witnm  this  common-  eranassoda- 
wealth  for  the  purpose  of  owning  property  for  use  and  1882'  217,  §  2. 
occupation  by  posts  of  the  grand  army  of  the  republic,  r.  l!  12,  §  5, 
to  the  extent  of  twenty  thousand  dollars,  if  it  is  actually  ^^•^" 
used  and  occupied  by  such  association  and  the  net  income 
from  said  property  is  used  for  charitable  purposes  in  aid 
of  needy  soldiers  of  the  war  of  the  rebellion  and  their 
dependents ;  but  it  shall  not  be  exempt  for  any  year  in 
which  such  association  wilfully  omits  to  bring  in  to  the 
assessors  the  list  and  statement  required  by  section  forty- 
one. 

Sixth,  The  Bunker  Hill  Monument.  MoSume™ 

R.  S.  7,  §  5,  cl.  3.       G.  S.  11,  §  5,  cl.  5.        P.  S.  11,  §  5,  cl.  5.         R.  L.  12,  §  5,  cl.  6. 

Seventh,  Houses  of  religious  worship  owned  by,  or  held  182^107  §  2 
in  trust  for  the  use  of,  any  religious  organization  and  the  ^- 1-  7.  §  s, 
pews  and  furniture ;  but  the  exemption  shall  not  extena  i84i',  127. 
to    portions    of    such    houses    appropriated    for    purposes  ci.'7.' 
other  than  religious  worship  or  instruction.  p.  s.' 11,  §  5.  " 

R.  L.  12.  §  5,  cl.  7.  127  Mass.  378.  155  Mass.  329.  ^^-  ^• 

1  Met.  538.  129  Mass.  178.  178  Mass.  404. 

118  Mass.  164.  147  Mass.  397.  185  Mass.  310. 

Eighth,  Cemeteries,  tombs  and  rights  of  burial,  so  long  Cemeteries, 
as  they  shall  be  dedicated  to  the  burial  of  the  dead.  g.  s.'ii,  §1,  * 

p.  S.  11,  §  5,  cl.  8.  118  Mass.  354,  361.  152  Mass.  408.  ^^^^^ 

R.  L.  12,  §  5,  cl.  8.  150  Mass.  12. 

Ninth,  The  property,  to  the  amount  of  five  hundred  dol-  ^^°^Jl%?^ 
lars,  of  a  widow,  of  an  unmarried  woman  above  the  age  males,  aged 
of  twenty-one  years,  of  a  person  above  the  affe  of  seventy-  minors. 

18 W   4^    5  1 

five  years  or  of  any  minor  whose  father  is  deceased,  who  g.  s.'ir,'§  5," 
are  legal  residents  of  the  commonwealth,   whether  such  1878,206,  §  1. 
property  be  owned  by  such  persons  separately,  or  jointly,  R^s.'n^,^§5, 
or  as  tenants  in  common:  provided,  that  the  whole  estate,  i885!i69. 
real  and  personal,  of  such  person  does  not  exceed  in  value  ^-  ^- 1^.  §  s, 
the  sum  of  one  thousand   dollars,  exclusive  of  propertv  i907,367. 

^1  .  ,  T  ,  '     .    .  -      -  .   ^      ^  .     "     137  Mass.  272. 

otnerwise  exempted  under  the  provisions  01  this  section. 
If  the  property  of  a  person  entitled  to  such  exemption  is 
taxable  in  more  than  one  city  or  town,  such  proportion  of 
the  total  exemption  shall  be  made  in  each  city  or  town  as 


118 


Property 
of  indigent, 
etc.,  persons. 
1821,  107,  §  6. 
R.  S.  7,  §  5, 
cl.8. 

G.S.  11,  §  5, 
cl.  13. 

Household 
furniture,  etc. 
1821,  107,  §  2. 
1829,  27,  §  2. 
R.  S.  7,  §  5, 
cl.  4. 

G.S.  11,  §5, 
cl.  7. 

Young  cattle, 

1821,  107,  §  2. 
R.  S.  7,  §  5, 
cl.  6. 


Property  of 
soldiers  and 
sailors. 

1894,  315. 

1895,  202. 

1897,  148. 

1898,  370. 
R.  L.  12,  §  5 
cl.  13. 
1907,  367. 


the  value  of  the  property  taxable  in  such  city  or  town  bears 
to  the  whole  of  the  property  taxable  in  the  commonwealth. 
'No  property  shall  be  so  exempt  which  the  assessors  shall 
adjudge  has  been  conveyed  to  such  person  to  evade  taxa- 
tion. A  person  aggrieved  by  such  judgment  may  appeal 
to  the  county  commissioners  within  the  time  and  in  the 
manner  allowed  by  the  provisions  of  section  seventy-six. 

Tenth,  The  polls  and  any  portion  of  the  estates  of  per- 
sons who  by  reason  of  age,  infirmity  and  poverty  are  in 
the  judgment  of  the  assessors  unable  to  contribute  fully 
toward  the  public  charges. 

p.  S.  11,  §  5,  cl.  12.        R.  L.  12,^  §  5,  cl.  10.         137  Mass.  272.       165  Mass.  375. 

Eleventh,  The  wearing  apparel  and  farming  utensils 
of  every  person;  his  household  furniture  not  exceeding 
one  thousand  dollars  in  value;  and  the  necessary  tools  of 
a  mechanic  not  exceeding  three  hundred  dollars  in  value. 

1865,  206,  §  1.        p.  S.  11,  §  5,  cl.  6.        R.  L.  12,  §  5,  cl.  11.         167  Mass.  371. 

Twelfth,  Mules,  horses  and  neat  cattle  less  than  one 
year  old,  swine  and  sheep  less  than  six  months  old  and 
domestic  fowls  not  exceeding  fifteen  dollars  in  value. 

G.  S.  11,  §  5.  cl.  11.        p.  S.  11,  §  5,  cl.  11.         1894,220.        R.  L.  12,  §  5,  cl.  12. 

Thirteenth,  The  property  of  the  following  classes  of 
persons  who  are  legal  residents  of  this  commonwealth  to 
the  amount  of  two  thousand  dollars  in  the  case  of  each 
person:  provided,  that  the  whole  estate,  real  and  personal, 
of  the  person  so  exempted  does  not  exceed  in  value  the  sum 
of  five  thousand  dollars;  and  provided,  further,  that  only 
two  thousand  dollars  shall  be  exempted  to  any  one  family, 
and  that  the  combined  property  of  the  family  does  not 
exceed  five  thousand  dollars:  First,  Soldiers  and  sailors, 
who  served  in  the  military  or  naval  service  of  the  United 
States  in  the  war  of  the  rebellion  and  who  were  honorably 
discharged  therefrom,  and  who,  by  reason  of  injury  re- 
ceived or  disease  contracted  while  in  such  service  and  in 
the  line  of  duty,  lost  the  sight  of  both  eyes,  or  lost  the 
sight  of  one  eye,  the  sight  of  the  other  having  been  pre- 
viously lost,  or  who  lost  one  or  both  feet,  or  one  or  both 
hands.  Second,  Soldiers  and  sailors  who  served  as  afore- 
said and  were  honorably  discharged  as  aforesaid,  and 
who,  as  the  result  of  disabilities  contracted  while  in 
such  service  and  in  the  line  of  duty,  have  become  per- 
manently incapacitated  for  the  performance  of  manual 
labor  to  an  extent  equivalent,  in  the  judgment  of  the 
assessors,  to  the  loss  of  a  hand  or  foot.    Third,  Wives  or 


119 

widows  of  soldiers  or  sailors  who  would  be  entitled  to  ex- 
emption under  either  of  the  two  preceding  paragraphs.  If 
the  property  of  a  person  entitled  to  such  exemption  is 
taxable  in  more  than  one  city  or  town,  such  proportion  of 
the  total  exemption  shall  be  made  in  each  city  or  town  as 
the  value  of  the  property  taxable  in  such  city  or  town  bears 
to  the  whole  of  the  property  taxable  in  the  commonwealth. 

The  certificate  of  the  granting  of  a  pension  to  any  such 
soldier  or  sailor  by  the  United  States  for  such  injur;^  or 
disability  shall,  while  such  pension  continues,  be  sufficient 
evidence  of  the  receiving  of  such  injury  or  disability ;  but 
the  assessors  may  receive  other  evidence  thereof.  A  person 
aggrieved  by  the  judgment  of  the  assessors  may  appeal  to 
the  county  commissioners,  within  the  time  and  in  the  man- 
ner allowed  by  the  provisions  of  section  seventy-six. 

Fourteenth,  Soldiers  and  sailors  who  served  in  the  mili-  Exemption 

-I  .  r'iT^'io<  •!  /»!        from  taxation 

tary  or  naval  service  oi  the  united  btates  m  the  war  oi  the  of  certain 
rebellion,  and  who  were  honorably  discharged  therefrom,  i906, 315,  §  1. 
shall  be  assessed  for,  but  shall  be  exempt,  at  their  request, 
from  the  payment  of,  a  poll  tax,  and  the  property  of  sol- 
diers and  sailors  who  served  as  aforesaid  and  were  honora- 
bly discharged  as  aforesaid,  but  who  would  not  be  entitled 
to  exemption  under  the  preceding  clause,  and  the  property 
of  the  wives  or  widows  of  such  soldiers  or  sailors,  shall  be 
exempted  from  taxation  to  the  amount  of  one  thousand 
dollars  in  the  case  of  each  person :  provided,  that  the  com- 
bined estate,  real  and  personal,  of  the  person  so  exempted 
and  of  the  husband  or  wife  of  such  person  does  not  exceed 
in  value  the  sum  of  five  thousand  dollars,  exclusive  of 
the  value  of  the  mortgage  interest,  held  by  persons  other 
than  the  person  to  be  exempted  in  such  mortgaged  real 
estate  as  may  be  included  in  said  combined  estate;  and 
provided,  further,  that  the  combined  exemption  of  such 
a  soldier  or  sailor  and  his  wife  shall  not  exceed  one  thou- 
sand dollars.  If  the  property  taxable  in  the  common- 
wealth of  a  person  entitled  to  such  exemption  is  taxable  in 
more  than  one  city  or  town,  such  proportion  of  the  total 
exemption  shall  be  made  in  each  city  or  town  as  the  value 
of  the  property  taxable  in  such  city  or  town  bears  to  the 
whole  of  the  property  taxable  in  the  commonwealth.  The  1906, 315,  §12. 
widows  of  soldiers  and  sailors  who  served  as  aforesaid  and 
who  lost  their  lives  in  the  war  of  the  rebellion  shall  be 
entitled  to  such  exemption  as  is  specified  in  the  preceding 


120 


Certain  bonds. 
1906,  493. 


Plantations  of 
timber  trees. 
1878. 131. 
1880, 109. 
P.  S.  11,  §  7. 
R.  L.  12,  §  6. 
Ill  Mass.  473. 
118  Mass.  386. 
137  Mass.  272. 


Ships  and  ves- 
sels engaged 
in  the  foreign 
carrying  trade. 
Return  to 
assessors  of 
valuation. 
1881,  284, 
|§  1-6. 
P.  S.  11, 
§§  8-10. 
1887,  373. 
1889,  286. 
1891,  116. 
1893.  149. 
1898,  353. 
R.  L.  14, 
§§  7-9. 

1902,  374,  §  3; 
375 

137  Mass.  272. 
198  U.  S.  299. 


Land  held  by 
a  city  or  town 
in  another  city 
or  town  for  a 
water  supply. 
1893,  352,  §  1. 
R.  L.  12,  §  10. 
180  Mass.  32. 


clause.  'No  exemption  shall  be  made  under  tlie  provisions 
of  this  clause  of  the  property  of  a  person  who  is  not  a  legal 
resident  of  this  commonwealth. 

Fifteenth,  Bonds  or  certificates  of  indebtedness  of  the 
commonwealth  issued  since  the  first  day  of  January  in  the 
year  nineteen  hundred  and  six,  stating  on  their  face  that 
they  are  exempt  from  taxation  in  Massachusetts. 

Section  6.  All  plantations  of  chestnut,  hickory,  white 
ash,  white  oak,  sugar  maple,  European  larch  and  pine 
timber  trees,  in  number  not  less  than  two  thousand  trees 
to  the  acre,  upon  land,  not  at  the  time  of  said  planting 
woodland  or  sprout-land  and  not  having  been  such  within 
five  years  previously,  the  actual  value  of  which  at  the  time 
of  planting  does  not  exceed  fifteen  dollars  per  acre,  shall, 
with  such  land,  be  exempt  from  taxation  for  a  period  of 
ten  years  after  said  trees  have  grown  in  height  four  feet 
on  the  average  subsequently  to  such  planting,  upon  satis- 
factory proof  by  the  owners  to  the  assessors  of  these  facts ; 
but  such  exemption  shall  not  extend  beyond  the  time  dur- 
ing which  said  land  is  devoted  exclusively  to  the  growth  of 
said  trees. 

Section  T.  Persons  or  partnerships  owning  an  interest 
in  -any  ship  or  vessel  which  has  during  the  period  of  its 
business  in  the  year  preceding  the  first  day  of  May  been 
engaged  in  the  foreign  carrying  trade  shall  annually, 
within  thirty  days  after  the  first  day  of  May,  make  a  re- 
turn under  oath  to  the  assessors  of  the  city  or  town  where 
such  persons  reside  or  where  such  partnerships  are  taxable 
under  the  provisions  of  section  twenty-eight,  respectively, 
setting  forth  the  name  of  the  ship  or  vessel,  their  interest 
therein,  and  the  value  of  such  interest.  If  the  assessors 
are  satisfied  of  the  truth  of  the  return  they  shall  assess  an 
excise  tax  of  one-third  of  one  per  cent  upon  such  interest; 
and  the  person  or  partnership  making  such  return  shall  be 
exempt  from  any  tax  upon  said  interest  other  than  that 
assessed  under  the  provisions  of  this  section. 

Section  8.  Property  held  by  a  city  or  town  in  an- 
other city  or  town  for  the  purpose  of  a  water  supply,  if 
yielding  no  rent,  shall  not  be  liable  to  taxation  therein, 
but  the  city  or  town  so  holding  it  shall,  annually  in  Sep- 
tember pay  to  the  city  or  town  in  which  such  property  lies, 
an  amount  equal  to  that  which  such  place  would  receive 
for  taxes  upon  the  average  of  the  assessed  values  of  such 
land,  without  buildings  or  other  structures,  for  the  three 


121 

years  last  preceding  the  acquisition  thereof,  the  valuation 
for  each  year  being  reduced  by  all  abatements  thereon; 
but  any  part  of  such  land  or  buildings  from  which  any 
revenue  in  the  nature  of  rent  is  received  shall  be  subject 
to  taxation. 

Section  9.    If  such  land  is  part  of  a  larger  tract  which  Valuation  of 
has  been  assessed  as  a  whole,  its  assessed  valuation  shall  be  1893, 352"  §  2. 
taken  to  be  that  proportional  part  of  the  valuation  of  the  ^'  ^'  12,  §  11. 
whole  tract  which  the  value  of  the  land  so  acquired,  ex- 
clusive of  buildings,  bore  in  the  year  of  assessment  to  the 
value  of  the  entire  estate. 

Section  10.     The  assessors  of  a  city  or  town  in  which  Appeal  from 
land  is  acquired  by  another  city  or  town  for  the  purpose  1893,352, 
of  a  water  supply  shall,  within  one  year  after  such  acquisi-  r.  l.  12,  §  12. 
tion,  determine  the  said  average  valuation  of  such  land,  ^^°^'  ^^^' 
and  certify  the  amount  so  determined  to  such  other  city 
or  town.     The  mayor  of  a  city  or  the  selectmen  of  a  town, 
within  six  months  after  receipt  of  said  certificate,  may  ap- 
peal from  such  determination  to  the  superior  court  for  the 
county  where  the  land  lies ;  and  said  court  shall  determine 
such  valuation  in  the  manner  provided  in  the  two  preced- 
ing sections,  and  the  provisions  of  sections  seventy-seven 
and  seventy-eight,  so  far  as  applicable,  shall  govern  such 
appeal. 

If  land  within  any  city  or  town  shall  have  been  taken 
from  such  city  or  town  for  said  purposes,  and  for  any  one 
of  the  three  years  prior  to  the  taking  shall  have  been  used 
for  any  public  purpose,  and  for  that  reason  no  taxes  shall 
have  been  collected  thereon,  the  city  or  town  and  the  board 
or  ofiicer  having  charge  of  the  water  supply  may  within 
six  years  after  the  taking  agree  as  to  the  value  of  the  land 
upon  which  the  annual  payment  is  to  be  made  as  aforesaid 
from  the  time  of  the  taking,  and  if  they  cannot  agree  the 
board  or  officer  shall  notify  the  city  or  town  thereof;  and 
thereupon  the  value  shall  be  determined  by  the  superior 
court  under  the  provisions  of  said  sections  seventy-seven 
and  seventy-eight,  and  said  notice  shall  be  deemed  to  be  the 
notice  referred  to  in  said  section  seventy-seven.  The  pro- 
visions of  this  section  and  of  the  two  preceding  sections 
shall  apply  to  property  acquired  for  the  purposes  of  the 
metropolitan  water  supply. 

Section  11.     The  real  estate  and  machinery  of  every  Real  estate 
private   corporation   organized    under   general    or    special  o?wa?^r^com-^ 
laws  of  the  commonwealth  for  the  purpose  of  carrying  on  1907^^329. 

192  Mass  .'491. 


122 


Leasehold  es- 
tates on  the 
Common- 
wealth Flats. 
1904,  385. 
193  Mass.  387, 
686. 


within  the  commonwealth  the  business  of  a  water  com- 
pany, except  such  corporations  as  by  charter  have  been 
made  exempt  from  taxation,  shall  be  subject  to  local  taxa- 
tion. The  valuation  of  real  estate  and  machinery  of  every 
such  company  for  the  purposes  of  taxation  shall  annually 
be  determined  by  the  tax  commissioner  of  the  common- 
wealth and  shall  be  certified  by  him  to  the  board  of  assess- 
ors of  the  city  or  tow^i  in  which  the  real  estate  and  ma- 
chinery are  situated  on  or  before  the  first  day  of  May  in 
each  year,  and  the  board  of  assessors  of  such  city  or  town 
shall  annually  assess  upon  such  water  company  a  tax  on 
the  basis  of  the  valuation  so  fixed,  in  the  same  manner  and 
at  the  same  rate  as  upon  property  of  private  individuals. 
When  the  certification  has  been  made  the  city  or  town  and 
the  corporation  concerned  shall  have  the  same  right  of  ap- 
peal from  the  valuation  therein  set  forth  as  is  provided  by 
section  sixty-five  of  Part  III.  Any  overpayment  of  a  tax 
determined  by  the  decision  of  the  board  of  appeal,  estab- 
lished by  the  said  section,  shall  be  repaid  from  the  treasury 
of  the  city  or  town  to  which  the  same  has  been  paid. 

Section  12.  The  lands  of  the  commonwealth,  situate 
in  that  part  of  the  city  of  Boston  called  South  Boston  and 
known  as  the  Commonwealth  Flats,  shall,  if  leased  for 
business  purposes,  be  taxed  by  the  city  of  Boston  to  the 
lessees  thereof,  respectively,  in  the  same  manner  as  the 
lands  and  buildings  thereon  would  be  taxed  to  such  lessees 
if  they  were  the  owners  of  the  fee,  except  that  the  payment 
of  the  tax  shall  not  be  enforced  by  any  lien  upon  or  sale 
of  the  lands ;  but  a  sale  of  the  leasehold  interest  therein 
and  of  the  buildings  thereon  may  be  made  by  the  collector 
of  the  city  of  Boston  in  the  manner  provided  by  law  in 
case  of  non-payment  of  taxes  for  selling  real  estate,  for 
the  purpose  of  enforcing  the  payment  of  the  taxes  by  such 
lessees  to  the  city  of  Boston  assessed  under  the  provisions 
hereof. 


Poll  tax,  where 


1780,  43. 
1821,  107,  §  3. 
1830,  151,  §  3. 
R.  S.  7,  §  6. 
G.  S.  11,  §  6. 
1876,  225, 
§§1.7. 


WHERE  AND  TO  WHOM  POLLS  AND  PROPERTY  SHALL  ?E 

ASSESSED. 

Section  13.  The  poll  tax  shall  be  assessed  upon  each 
person  liable  thereto  in  the  city  or  town  of  which  he  is  an 
inhabitant  on  the  first  day  of  May  in  each  year,  except  in 
cases  otherwise  provided  for  by  law.  The  poll  tax  of 
minors  liable  to  taxation  shall  be  assessed  to,  and  in  the 


123 

place  of  the  residence  of,  the  parents,  masters  or  guard-  g-  ^  ^^^  |  ^^^ 
ians  having  control  of  the  persons  of  such  minors;  but  if  f  ^^^^-^l?' 
a  minor  has  no  parent,  master  or  guardian  within  the  com-  250. 
monwealth,  he  shall  be  personally  taxed  for  his  poll,  as  if  4Met;i8i! 
he  were  of  full  age.     The  poll  tax  of  every  other  person  i2Cush:44r" 
under  guardianship  shall  be  assessed  to  his  guardian  in  lliray,  484. 
the  place  where  the  guardian  is  taxed  for  his  own  poll.     In  ^  2,111]  299! 
a  citv  each  inhabitant  liable  to  assessment  shall  be  assessed  ^Pl^^'  ^^J- 
in  the  ward  where  he  dwells;  but  no  tax  shall  be  invalid  l^ Gray  337. 
by  reason  of  a  mistake  of  the  assessors  in  ascertaining  the  i2Aiien,  iii, 
ward  in  which  a  person  should  be  assessed.  i24"Mass.  53, 

126  Mass.  161,  166.  132  Mass.  93.  137  Mass.  272.  ^'*-'- 

Section  14.     A  person  liable  to  a  poll  tax,  who  is  in  Person  to  be 
a  city  or  town  on  the  first  day  of  May,  and  who,  when  in-  where  he 
quired  of  by  the  assessors  thereof,  refuses  to  state  his  legal  resiSince^ 
residence,  shall  for  the  purpose  of  taxation  be  deemed  an  a^.'n,^§7. 
inhabitant  of  such  place.     If  he  designates  another  place  R.i'.Vi  Vi4 
as  his  legal  residence,  said  assessors  shall  notify  the  assess- 
ors of  such  other  place,  who  shall  thereupon  tax  him  as 
an  inhabitant  thereof ;  but  he  shall  not  be  exempt  from  the 
payment  of  a  tax  legally  assessed  upon  him  in  his  legal 
domicil. 

Section  15.     Taxes  on  real  estate  shall  be  assessed,  in  Land,  where 
the  city  or  town  in  which  the  estate  lies,  to  the  person  who  ?axedL  ^  ^"^ 
is  either  the  owner  or  in  possession  thereof  on  the  first  i83o;i5i.§3. 
day  of  May,  and  the  person  appearing  of  record,  in  the  G.|.ii,\^8. 
records  of  the  county,  or  of  the  district,  if  such  county  is  j^^g^'i^i^^^  \i' 
divided  into  districts,  in  which  the  estate  lies,  as  owner  on  i889, 84. 
the  first  day  of  May,  even  though  deceased,  shall  be  held  1902;  113. 
to  be  the  true  owner  thereof.     Except  as  provided  in  the  7  Gray,  127", 
three  following  sections,  mortgagors  of  real  estate  shall  for  I  Aiien,  57.  • 
the  purpose  of  taxation  be  deemed  the  owners  until  the  n2  Mass!  535. 
mortgagee  takes  possession,  after  which  the  mortgagee  shall  n^MSslisa. 
be  deemed  the  owner.  129  Ma.s.s.  378.  132  Mass.  94. 

138  Mass.  434.         148  Mass.  510.  175  Mass.  293.  186  Mass.  128. 

139  Mass.  19.  149  Mass.  269.  180  Mass.  65.  192  Mass.  278. 
143  Mass.  337.         152  Mass.  203.          185  Mass.  114,  398. 

Section  16.     If  any  person  has  an  interest  in  real  es-  Taxation  of 
tate,  not  exempt  from  taxation  under  section  five,  as  holder  Snd.^^^^^ 
of  a  duly  recorded  mortgage  given  to  secure  the  payment  p^^s^;n°^§  14/ 
of  a  fixed  and  certain  sum  of  money,  the  amount  of  his  J^^^-  Jq^'s^I* 
interest  as  mortgagee  shall  be  assessed  as  real  estate  in  the  J^s  Mass.  569. 

1  1  1        T         1    T  IT  1      n    1  137  Mass.  80. 

place  where  the  land  lies;  and  the  mortgagor  shall  be  as-  159 Mass. 551. 
sessed  only  for  the  value  of  such  real  estate  after  deduct-  74. 
ing  the  assessed  value  of  the  interest  therein  of  such  mort- 


124 


Statements  of 
mortgage  con-*^ 
elusive  on 
mortgagee, 
when. 

1881,  304,  §  2. 
P.  S.  11,  §  15. 
R.  L.  12,  §  17. 
1902,  112. 
159  Mass.  553. 
179  Mass.  41. 
193  Mass.  190. 


Mortgagors 
and  mort- 
gagees joint 
owners  for 
taxation. 
1881,  304,  §  3. 
P.  S.  11,  §  16. 
R.  L.  12,  §  18. 
137  Mass.  80, 
273. 

159  Mass.  553. 
179  Mass.  41. 
193  Mass.  190. 


Dertain  rail- 
road bonds  to 
be  deemed 
mortgages  on 
real  estate. 
1889, 348. 
R.  L.  12,  §  19. 


If  such  estate  is  situated  in  two  or  more  places, 
the  amount  of  the  mortgagee's  interest  to  be  assessed  in 
each  place  shall  be  proportioned  to  the  assessed  value  of 
the  mortgaged  real  estate  in  the  respective  places,  deduct- 
ing therefrom  the  taxable  amount  of  prior  mortgages,  if 
any,  thereon. , 

Section  17.  If  the  holder  of  such  mortgage  fails  to 
file  in  the  assessors'  office  a  statement  under  oath  of  all  his 
estate  liable  .to  taxation  under  the  preceding  section,  in- 
cluding a  statement  of  the  full  amount  remaining  unpaid 
upon  such  mortgage  and  of  his  interest  therein,  the  amount 
stated  in  the  mortgage  shall  be  conclusive  as  to  the  extent 
of  such  interest;  but  his  interest  in  such  real  estate  shall 
not  be  assessed  at  a  greater  s\im  than  the  fair  cash  valua- 
tion of  the  land  and  the  structures  thereon  or  affixed 
thereto ;  and  the  amount  of  a  mortgage  interest  in  an  es- 
tate which  has  been  divided  after  the  creation  of  such 
mortgage  need  not  be  apportioned  upon  the  several  parts 
of  such  estate,  except  as  provided  in  sections  eighty-eight 
to  ninety  inclusive.  Whenever,  in  any  case  of  mortgaged 
real  estate,  a  statement  is  not  brought  in  as  herein  pro- 
vided, no  tax  on  such  real  estate  for  the  year  then  current 
shall  be  invalidated  for  the  reason  that  a  mortgagee's  in- 
terest therein  has  not  been  assessed  to  him. 

Section  18.  Mortgagors  and  mortgagees  referred  to 
in  the  two  preceding  sections  shall  for  the  purpose  of  tax- 
ation be  deemed  joint  owners  until  the  mortgagee  takes 
possession;  and  until  such  possession  is  taken  by  a  first 
mortgagee,  an  assessor  or  the  collector  of  taxes,  upon  ap- 
plication, shall  give  to  any  such  mortgagee  or  mortgagor 
a  tax  bill  showing  the  whole  tax  on  the  mortgaged  estate 
and  the  amount  included  in  the  valuation  thereof  as  the 
interest  of  each  mortgagee  and  of  the  mortgagor  respec- 
tively. If  the  first  mortgagee  is  in  possession,  he  shall  be 
deemed  sole  owner;  and  any  other  mortgagee  in  posses- 
sion shall  be  deemed  joint  owner  with  prior  mortgagees. 

Section  19.  Bonds  issued  by  the  New  York  and  !N'ew 
England  Railroad  Company  for  the  payment  of  which  first 
mortgages  made  as  provided  in  chapter  three  hundred  and 
one  of  the  acts  of  the  year  eighteen  hundred  and  eighty- 
eight  are  held  as  collateral  security,  and  also  the  mortage 
notes  so  held  as  collateral  security,  shall,  for  the  purpose 
of  taxation  and  for  the  purpose  of  exemption  of  deposits 


125 

in  savings  banks  and  institutions  for  savings  from  taxation, 
be  deemed  to  be  a  loan  on  mortgage  of  real  estate,  taxable 
as  real  estate,  and  not  otherwise. 

Section  20.     If  a  tenant  paying  rent  for  real  estate  is  Tenant  may 
taxed  therefor,  he  may  retain  out  of  his  rent  the  taxes  paid  landlord  taxes 
by  him,  or  may  recover  the  same  in  an  action  against  his  i82i",  107.  §  3. 
landlord,  unless  there  is   a  different  agreement  between  r.^s.'t.^^'s^  ^' 
them.        G.  s.  11,  §9.  p.  s.  11,  §17.  r.  l.  12,  §20. 

115  Mass.  32.  142  Mass.  568.  189  Mass.  182. 

Section  21.     The  undivided  real  estate  of  a  deceased  de^edenf.^how 
person  may  be  assessed  to  his  heirs  or  devisees,  without  HSrs.^etc.,  sev- 
designating  any  of  them  by  name,  until  they  have  given  ^'Jfjj^^^-jjj^-j^^ 
notice  to  the  assessors  of  the  division  of  the  estate  and  of  g|-Ji§§^2. 
the  names  of  the  several  heirs  or  devisees;  and  each  heir  p.s.ii.'§  is.' 
or  devisee  shall  be  liable  for  the  whole  of  such  tax,  and  149  Ma^s.  270'. 
when  paid  by  him  he  may  recover  of  the  other  heirs  or  1^2  Mass.  219. 
devisees  their  respective  proportions  thereof. 

Section  22.     The  real  estate  of  a  person  deceased,  the  ,7'tiii7do^uS^* 
right  or  title  to  which  is  doubtful  or  unascertained  by  rea-  ^847*926 
son  of  litigation  concerning  the  will  of  the  deceased  or  g.  s.'ii,§ii. 
the  validity  thereof,  may  be  assessed  in  general  terms  to  r.  l.  12,  §  22. 
his  estate,  and  said  tax  shall  constitute  a  lien  upon  the 
land  so  assessed  and  may  be  enforced  by  sale  of  the  sanie 
or  a  part  thereof,  as  provided  for  enforcing  other  liens  for 
taxes  on  real  estate. 

Section  23.   All  personal  estate,  within  or  without  the  ^^g^^^^i^^* '^^ 
commonwealth,  shall  be  assessed  to  the  owner  in  the  city  fl*?*®-.., 
or  town  in  which  he  is  an  inhabitant  on  the  first  day  of  R.  s.'7, 
May,  except  as  provided  in  Part  III.  and  in  the  follow-  1839, 139,  §  2. 
ing  clauses  of  this  section :  —  p.' s!  11!  §  20! 

R.  L.  12,  §  23.  7  Gray,  277.  104  Mass.  587.  132  Mass.  93. 

I  Met.  242,  250.  9  Gray,  433.  109  Mass.  270.  135  Mass.  258. 
4  Met.  181.  13  Gray,  488.  112  Mass.  384.  137  Mass.  332. 
10  Gush.  65.  16  Gray,  292,  337.  124  Mass.  143.  158  Mass.  461. 

II  Gush.  362.  9  Allen,  246.  125  Mass.  348.  180  Mass.  40,  458. 
3  Gray,  494.            14  Allen,  366.                  126  Mass.  161,  166.    181  Mass.  162, 195. 
6  Gray,  579.            103  Mass.  279.                 131  Mass.  424.  187  Mass.  168. 

First,   Goods,  wares,  merchandise  and  other  stock   in  —except stock 

trade,  except  ships  or  vessels  owned  by  a  copartnership,  employed  in"' 

and  stock  employed  in  the  business  of  manufacturing  or  1821^10^^15. 

of  the  mechanic  arts  in  cities  or  towns  in  the  common-  r.  s.' 7,  § 'lo,  * 

wealth,    other   than   those    in    which   the    owners    reside,  fg^g  139^  §  1 

whether  such  owners  reside  within  or  without  the  common-  Jj^^|'  ^^"^^  ^2, 

wealth,  shall  be  taxed  in  the  cities  or  tovnis  in  which  the  ^- 1-  ^^     20 
owners   hire   or   occupy   manufactories,    stores,    shops    o^?ly-i2  5  9q 

wharves,  whether  such  property  is  in  said  places  or  else-  ci.i.' 


126 


1903,  437, 
§  71. 

4  Met.  186. 
4  Cush.  543. 


Machinery 
employed  in 
manufactur- 
ing. 
1830 
R.  S. 


151,  §2. 
7,  §  10, 


11, 


cl.  2. 

1837, 

G.  S. 

cl.  2. 

P.  S. 

cl.  2. 

1887,  125. 

1889,  446. 

1894.  304. 

R.  L.  12,  §  23, 

cl.  2. 

4  Met.  181, 

185. 

13  Gray,  488. 

12  Allen,  75, 

316. 

100  Ma.ss.  183. 

135  Mass.  258. 

150  Mass.  155. 

152  Mass.  372. 

164  Mass.  142. 

167  Mass.  517. 

170  Mass.  354. 

181  Ma.ss.  211. 

193  Mass.  274. 


Horses,  etc. 

1821.  107,  §  3. 

1830,  151,  §  2. 

R.  S.  7,  §  10, 

cl.  3. 

1839,  139,  §  2. 

1857,  301,  §  1. 

G.  S.  11,  §  12, 

cl.  3. 

P.  S.  11,  §  20, 

cl.  3. 

R.  L.  12,  §  23, 

cl.  3. 

Property  of 
persons  under 
guardianship. 
R.  S.  7,  §  10, 
cl.  4. 

1855,  106. 
1859,  258. 
G.  S.  11,  §  12, 
cl.  4. 

P.  S.  11,  §  20, 
cl.  4. 

Trust 

property. 

R.  S.  7,  §  10, 

cl.5. 

G.  S.  11,  §  12, 

cl.  5. 

P.  S.  11,  §  20, 

cl.5. 


where  on  the  first  day  of  May  of  the  year  when  the  tax  is 
assessed.  The  merchandise  of  a  foreign  corporation  shall 
be  assessed  in  the  city  or  town  where  it  is  situated. 

10  Cush.  65.  101  Mass.  329.  150  Mass.  155.  187  Mass.  168. 

6  Gray,  579.  139  Mass.  17.  266.       151  Mass.  242.  193  Ma.ss.  545. 

13  Gray,  491.        145  Mass.  110.  161  Mass.  9,  326.         194  Mass.  127. 

Second,  Machinery  employed  in  any  branch  of  manu- 
factures, including  machines  used  or  operated  under  a 
stipulation  providing  for  the  payment  of  a  royalty,  or  com- 
pensation in  the  nature  of  a  royalty,  for  the  privilege  of 
using  or  operating  the  same,  and  all  personal  property 
within  the  commonwealth  leased  for  profit,  shall  be  as- 
sessed where  such  machines  or  such  personal  property  are 
located,  to  the  owner  or  any  person  having  possession  of 
the  same  on  the  first  day  of  May.  If  machinery,  located 
in  a  city  or  town  other  than  that  of  which  the  owner  is 
an  inhabitant,  is  assessed  therein  and  it  is  also  assessed 
in  the  place  of  which  the  owner  is  an  inhabitant,  he  may 
pay  the  taxes  in  the  ]ilace  where  the  machinery  is  located, 
and  upon  proof  thereof  to  the  collector  of  the  place  whereof 
he  is  an  inhabitant,  he  shall  be  relieved  from  the  payment 
of  taxes  therein  on  said  machinery ;  but  the  place  of  which 
the  owner  is  an  inhabitant  may  bring  suit  against  the  place 
where  the  machinery  is  located  to  determine  to  which  place 
the  tax  lawfully  belongs. 

Third,  Horses,  mules,  neat  cattle,  sheep  and  swine  kept 
throughout  the  year  in  cities  or  towns  other  than  those  in 
which  the  owners  reside,  whether  such  owners  reside  within 
or  without  the  commonwealth,  and  horses  employed  in 
stages  or  other  vehicles  for  the  transportation  of  passengers 
for  hire  shall  be  assessed  to  the  owners  in  the  places  where 
they  are  kept. 


8  Allen,  330. 


130  Ma.ss.  478. 


145Ma.ss.  110. 


152  Mass.  594. 


Fourth,  Personal  property  belonging  to  j^ersons  under 
guardianship  shall  be  assessed  to  the  guardian  in  the  city 
or  town  of  which  the  ward  is  an  inhabitant  unless  the  ward 
resides  and  has  his  home  without  the  commonwealth,  in 
which  case  it  shall  be  taxed  to  the  guardian  in  the  city  or 
town  of  which  he  is  an  inhabitant.        n  i^  12,  §  23,  ci.  4. 

2  Gray,  494.  4  Allen,  462.  105  Mass.  528.  145  Mass.  111.  i 

Fifth,  Personal  property  held  in  trust  by  an  executor, 
administrator  or  trustee,  the  income  of  which  is  payable 
to  another  person,  shall  be  assessed  to  the  executor,  ad- 
ministrator or  trustee  in  the  city  or  town  in  which  such 


127 

other  person  resides,  if  within  the  commonwealth ;    and  1894, 490. 
if  he  resides  ont  of  the  commonwealth  it  shall  he  assessed  ci.'s.' 
in  the  place  where  the  executor,  administrator  or  trustee  e  Grly,  i3'2. 
resides ;    and  if  there  are  two  or  more  executors,  admin-  losuLs^hs. 
istrators  or  trustees  residing  in  different  places,  the  prop-  }|omS;346; 
erty  shall  be  assessed  to  them  in  equal  portions  in  such  II^m^s^si" 
places,  and  the  tax  thereon  shall  be  paid  out  of  said  in-  Jfo  £2' lo'^' 
come.     If  the  executor,  administrator  or  trustee  is  not  an  i84  Mass.  460. 

.  194  Mass.  44. 

inhabitant  of  the  commonwealth,  it  shall  be  assessed  to  the 
person  to  whom  the  income  is  payable,  in  the  place  where 
he  resides,  if  it  is  not  legally  taxed  to  an  executor,  ad- 
ministrator or  trustee  under  a  testamentary  trust  in  any 
other  state. 

Sixth,  Personal  property  placed  in  the  hands  of  a  cor-  Personal 
poration  or  individual  as  an  accumulating  fund  for  the  alan^Sumu- 
future  benefit  of  heirs  or  other  persons  shall  be  assessed  r*^s.^7^"§^i6, 
to   such   heirs   or   persons,    if   within   the   commonwealth,  ai".  ii,§i2, 
otherwise  to  the   person   so   placing  it,   or  his   executors  pg  ^  §20 
01-   administrators,    until   a   trustee   is   appointed   to  take  |J-  ^  ^J  .  ^3 
charge  of  such  property  or  of  the  income  thereof.  f-  6-     '       ' 

121  Mass.  351.  123  Ma.ss.  355.  124  Mass.  193.  147  Mass.  427.  ^"" 

Seventh,   Personal  property   of  deceased  persons   shall  i~f  ^7^^§%°*^- 
be  assessed  in  the  city  or  town  in  which  the  deceased  last  ^\:J-   ',, 
dwelt,     iieiore  the  appointment  of  an  executor  or  admm-  1852,234 
istrator  it  shall  be  assessed  in  general  terms  to  the  estate  ci.'7." 
of  the  deceased,  and  the  executor  or  administrator  subse-  p.  s.'ii,  §  20,' 
quently  appointed  shall  be  liable  for  the  tax  so  assessed  as  r.  l.  12,  §  23, 
though  assessed  to  him.     After  such  appointment  it  shall  5  Pick.  236. 
be   assessed  to   such  executor   or   administrator  for  three  \  ^^^  277 
years  or  until  it  has  been  distributed  and  notice  of  such  ?LH^^-^o?i 

J.        .,        .  ,  ,  .  .  T         102  Mass.  348. 

distribution  has   been  given  to  the  assessors  stating  the  123  Mass.  376. 
name   and  residence  of  the   several  parties   interested   in  154  Mass.'  143. 
the  estate  who  are  inhabitants  of  the  commonwealth  and  176  Mass!  77. 
the  amount  paid  to  each.     After  three  years  from  the  date  ^^^  ^^'-  ^^^' 
of  such  appointment  it  shall  be  assessed  according  to  the 
provisions  of  clause  five  of  this  section. 

EighJ^h,    Personal    property    taxable    as    such,    held    in  —  ofinsoi- 
trust  by  assignees  under  the  insolvent  law  or  under  any  i882!'i65.' 
bankrupt  law  or  any  voluntary  assignment  for  the  benefit  d.'s".' ^^' ^  ^^' 
of   creditors,   shall   be   assessed  to   such   assignees   in  the 
place  where  the  insolvent, .  bankrupt  or  assignor  had  his 
principal  place  of  business,  if  any ;    otherwise  in  the  place 
of  his  residence. 


128 


Personal  prop- 
erty of  joint 
tenants. 
1882,  165. 
R.  L.  12,  §  23, 
cl.  9. 
180  Mass.  40. 

Assessment  of 
underground 
conduits,  etc. 
1902,  342,  §  1. 
193  Mass.  274. 


Separate  as- 
sessment of 
personal  prop- 
erty held  in 
trust  for  sev- 
eral benefi- 
ciaries. 

1878,  189,  §  1. 
P.  S.  11,  §  21. 
R.  L.  12,  §  24. 
124  Mass.  193. 
146  Mass.  111. 
165  Mass.  292. 


Ministerial 
fund. 

R.  S.  7,  §  10, 
cl.8. 

G.  S.  11,  §  13. 
P.  S.  11,  §  22. 
R.  L.  12,  §  25. 
19  Pick.  542. 
12  Cush.  54. 
Personal  prop- 
erty mort- 
gaged. 

R.  S.  7,  §  11. 
G.  S.  11,  §  14. 
P.  S. 11,  §  23. 
1888,413, 
§  20. 

R.  L.  12,  §  26. 
10  Met.  334. 
10  Allen,  100. 
193  Mass.  522. 

Partners,  how 

taxed. 

R.  S.  7,  §  13. 

1859,  114. 

G.  S.  11,  §  15. 

P.  S.  11,  §  24. 

R.  L.  12,  §  27. 


I^intli,  Personal  property  of  joint  owners  or  tenants  in 
common,  other  than  partners,  shall  he  assessed  to  such 
o^vners  according  to  their  respective  interests,  in  the  cities 
or  towns  in  which  they  respectively  reside. 

Tenth,  Underground  conduits,  wires  and  pipes  laid  in 
public  streets  by  any  corporation,  except  street  railway 
companies,  shall  be  assessed  to  the  owners  thereof  in  the 
cities  or  towns  in  which  they  are  laid. 

Section  24.  If  personal  property  belonging  to  two  or 
more  persons  under  guardianship,  or  personal  property 
held  in  trust  by  an  executor,  administrator  or  trustee, 
the  income  of  which  is  payable  to  two  or  more  persons, 
or  if  personal  property  placed  in  the  hands  of  a  corpo- 
ration or  individual  as  an  accumulating  fund  for  the  future 
benefit  of  two  or  more  heirs  or  other  persons,  is  assessed 
under  the  preceding  section  by  the  assessors  of  a  city  or 
town  in  whole  or  in  part,  they  shall,  upon  request  in 
writing,  made  within  the  time  specified  by  them  for  the 
bringing  in  of  lists  under  the  provisions  of  section  forty- 
one  and  stating  the  names,  domicils  and  proportionate 
shares  of  such  wards,  cestuis  que  trust,  heirs  or  other 
persons,  make  se]>arate  assessments  so  as  to  distinguish 
how  much  of  such  personal  property  is  assessed  in  re- 
spect to  each.  If  any  such  assessment  is  illegally  made, 
the  taxes  paid  thereon  may  be  recovered  back  in  an  action 
at  law  in  the  same  manner  as  in  other  cases  of  illegal 
assessment. 

Section  25.  Eeal  estate  held  by  a  religious  society  as 
a  ministerial  fund  shall  be  assessed  to  its  treasurer  in  the 
town  in  which  it  lies.  Personal  property  so  held  shall  be 
assessed  in  the  town  in  which  such  society  usually  holds 
its  meetings.  147  Mass.  398. 

Section  26.  Personal  property  mortgaged  or  pledged 
shall  for  the  purpose  of  taxation  be  deemed  the  property 
of  the  party  in  possession  thereof  on  the  first  day  of  May 
and  money  deposited  with  a  safe  deposit,  loan  and  tinist 
company  which  can  be  withdrawn  on  demand  or  u^on  not 
more  than  ten  days'  notice  shall  be  deemed  to  be  money 
in  possession  of  the  person  to  whom  it  is  payable. 

Section  27.  Partners,  whether  residing  in  the  same 
or  in  different  cities  or  towns,  may  be  jointly  taxed  under 
their  firm  name,  in  the  place  where  their  business  is  carried 
on,  for  all  the  personal  property  employed  in  such  busi- 


129 

ness,   except   ships  or  vessels.       If  partners  have  places  QCush.  298. 
of  business  in  two  or  more  towns,  they  shall  be  taxed  i4  Alien,  366. 
in  each   of  such   places   for  the   proportion  of  property  m  mSs!  322! 
employed  therein.     If  so  jointly  taxed,  each  partner  shall  iIoM^siti 
be  liable  for  the  whole  tax.  137  Ma^s.  227  ^^^  ^^''-  ^^^• 

140  Mass.  346.  163  Mass.  444.  172  Mass.  383,  464. 

Section  28.  Ships  or  vessels  owned  by  a  partnership  ships  of  co- 
shall  be  assessed  to  the  several  partners  in  their  places  of  SSed.'  °^ 
residence,  if  within  the  commonwealth,  proportionally  to  a^l.'ii,^§  i6. 
their  interests  therein;  but  the  interests  of  the  several  p^s^/n^^iy.' 
partners  who  reside  without  the  commonwealth  shall  be  §)Qra^'|7^^" 
assessed  to  the  partnership  in  the  place  where  its  business  i^  Alien',  369. 

.     ,  ^  ^  ^  125  Mass.  351 

is  carried  on. 

EVASION    OF   TAXATION. 

Section  29.      Whoever  in  any  way  directly  or  indi-  unde?  vI?ua^-°'^ 
rectly  proposes  or  agrees  to  an  assessment  on  any  specific  tion  as  induce- 

y     ,        ^  ^  ,  ■  ..  ment  to  resi- 

or  limited  amount  less  than  that  for  which  he  is  liable  dence. 
by  law  to  be  taxed,  with  the  purpose  or  as  an  inducement  p.s.'ii,'§  26. 
to  make  any  particular  place  his  residence  for  the  purpose  12  Aiien',  599.* 
of  taxation,  shall  be  punished  by  a  fine  of  one  thousand 
dollars;    and  an  assessor  guilty  of  making  or  assenting  to 
any  such  proposal  shall  be  subject  to  a  like  penalty. 

Section  30.     Whoever  avoids  taxation  by  wilfully  and  Evasion  of  tax- 

,      .  ,,  1  .  T  ,  .  •^.  ,  *^       ,        ation,  etc.,  by 

designedly   changing  or  concealing  his   residence,   or    by  concealment  of 
any  other  act  with  the  intent  so  to  avoid  taxation,  shall  be  i864, 172', 
punished  by  a  fine  of  twice  the  amount  of  the  last  tax  p.  s!  11,  §  27. 
paid  by  him,  or,  if  he  has  paid  no  tax  in  the  common-  i24mLss.56.* 
wealth,  by  a  fine  of  not  less  than  one  hundred  nor  more  it^Mass. 592. 
than  five  thousand  dollars;    and  he  may  be  indicted  in 
the  county  in  which  any  of  the  acts  or  things  made  crim- 
inal by  the  provisions  of  this  section  are  done  or  in  the 
county  in  which  he  is  liable  to  taxation. 

Section    31.       A   shareholder   in   a   corporation   who.  For  fraudulent 
with  intent  to  evade  taxation,   fraudulently  transfers   a  stock^^'^^^^ 
share  of  its  stock,  or  fraudulently  causes  or  procures  a  p^^'j^i^^^  Is^; 
certificate  of  a  share  to  be  issued  to  any  person  other  than  i3Qr2^'639^* 
himself  or  in  any  name  other  than  his  own ;   or  who  refuses 
to   inform,    or   wilfully   misinforms,    the   corporation    re- 
specting his  name  or  residence;    or,  having  changed  his 
residence  to  another  city  or  town  in  the  commonwealth, 
wilfully  omits  to  give  notice  thereof  to  any  corporation  in 
the  commonwealth   in  which   he   is   a   shareholder,   shall 
forfeit  one-half  of  the  par  value  of  the  shares  so  trans- 


130 


False  returns 
or  lists  to  as- 


1869,  190. 
P.  S.  11.  §  29. 
R.  L.  12,  §  32. 
112  Mass.  218. 
134  Mass.  432. 
137  Mass.  273. 


Refusal,  etc., 
of  information 
by  keepers  of 
taverns,  etc. 
1837,  176. 
G.  S.  11,§21. 
P.  S.  11,  §  30. 
R.  L.  12,  §  33. 
137  Mass.  273. 


Treasurer  and 
receiver  gen- 
eral to  send  his 
warrants. 
R.  S.  7,  §  14. 
G.  S.  11,  §  17. 

1867,  166. 

Assessment  of 
taxes  pursuant 
to  this  chapter. 
1785,  50. 
§§4,8. 

1821,  107,  §  7. 
R.  S.  7,  §  16. 
G.  S.  11,  §  18. 

1870,  332,  §  2. 
P.  S.  11,  §  32. 
R.  L.  12,  §  35. 

Rate  of  taxa- 
tion, how 
ascertained  in 
places  having 
national  banks. 

1868,  349,  §  5. 

1871,  390,  §  4. 

1872,  321, 
§13. 

1873,  315,  §  4. 
P.  S. 11,  §  33. 
R.  L.  12,  §  36. 
101  Mass.  575. 


Amount  of 
annual  assess- 
ment. 

Deductions. 
1875,  209,  §  1. 


ferred,  issued  to  or  owned  by  him  in  the  stock  of  such  cor- 
poration to  the  use  of  the  city  or  town  in  which  he  resides. 

Section  32.  Whoever,  with  intent  to  defeat  or  evade 
the  provisions  of  law  as  to  the  assessment  or  payment  of 
taxes,  delivers  or  discloses  to  an  assessor  or  assistant 
assessor  a  false  or  fraudulent  list,  return  or  schedule  of 
property,  as  and  for  a  true  list  of  his  estate  not  exempt 
from  taxation,  shall  he  punished  by  a  fine  of  not  more 
than  one  thousand  dollars  or  by  imprisonment  for  not 
more  than  one  year. 

Section  33.  Keepers  of  tavel-ns  and  boarding  houses 
and  masters  and  mistresses  of  dwelling  houses,  shall,  upon 
application  of  an  assessor  of  the  city  or  town  in  which 
their  house  is  situated,  give  the  names  of  all  persons  re- 
siding therein  who  are  liable  to  be  assessed  for  taxes. 
Every  such  keeper,  master  or  mistress  refusing  to  give 
such  information,  or  knowingly  giving  false  information, 
shall  be  punished  by  a  fine  of  tAventy  dollars  for  each 
offence. 

DUTY   AND    MANNER    OF   ASSESSING    TAXES. 

Section  34.  When  a  state  tax  is  to  be  assessed,  the 
treasurer  and  receiver  general  shall  send  his  warrants  for 
the  assessment  thereof  by  mail  to  the  assessors  of  the  sev- 
eral cities  and  towns.  p.  s.  ii,  §  31.  r.  l.  12,  §  34. 

Section  35.  The  assessors  shall  assess,  according  to 
the  provisions  of  this  part,  state  taxes  for  which  they 
receive  such  warrants,  county  taxes  duly  certified  to  them, 
city  or  town  taxes  voted  by  their  respective  cities  or  towns 
and  all  taxes  duly  voted  and  certified  by  fire  and  other 
districts  therein. 

12  Met.  178.  117  Mass.  469.  119  Mass.  77.  126  Mass.  476 

Section  36.  Assessors  of  cities  and  towns  in  which  a 
national  bank  or  banking  association  is  located  shall,  for 
the  purpose  of  ascertaining  the  rate  at  which  taxes  shall 
be  assessed,  omit  from  the  valuation  upon  which  the  rate 
is  to  be  based  the  value  of  all  shares  held  by  non-resi- 
dents of  said  cities  and  towns,  and  no  tax  of  any  city  or 
town  shall  be  invalidated  by  reason  of  any  excess,  in  con- 
sequence of  the  provisions  of  this  section,  of  the  amount 
of  such  tax  over  the  amount  to  be  raised. 

Section  37.  The  assessors  shall  annually  assess  taxes 
to  an  amount  not  less  than  the  aggregate  of  all  amounts 
appropriated,  granted  or  lawfully  expended  by  their  re- 


131 

spective  cities  or  towns  since  the  last  preceding  annual  ^- 1;  ^^^  5  34 • 
assessment  and  not  provided  for  therein,  of  all  amounts  ii4  Mass.  592. 
which  are  required  by  law  to  be  raised  by  taxation  by  the 
said  cities  or  towns  during  said  year  and  of  all  amounts 
necessary  to  satisfy  final  judgments  against  the  said  cities 
or  towns ;  but  such  assessments  shall  not  include  liabilities 
for  the  payment  of  which  cities  or  towns  have  lawfully 
voted  to  contract  debts.  The  assessors  may  deduct  the 
amount  of  all  the  estimated  receipts  of  their  respective 
cities  or  towns,  except  from  loans  or  taxes,  which  are  law- 
fully applicable  to  the  payment  of  the  expenditures  of  tha 
year  from  the  amount  required  to  be  assessed;  but  such 
deduction  shall  not  exceed  the  amount  of  such  receipts 
during  the  preceding  year. 

Section  38.      The  assessors  of  a  city  or  town  owing  Amount  of 
debts  incurred  to  obtain  funds  for  subscriptions  for  the  menTtolnciude 
capital  stock  and  securities  of  a  railroad  corporation  shall  fOT^mfiroad^^^* 
annually  assess,  in  addition  to  the  other  amounts  required  igye^^ss.Ts. 
by  law,   an  amount  sufficient  to  pay  the  excess  of  such  p-  |j  ^^^  §35.^ 
interest  payable  by  such  city  or  town,  over  any  income 
received  from  such  stock  or  securities. 

Section  39.  If  the  assessors  neglect  to  assess  a  state,  Penalty  on  aa- 
county,  tovni  or  district  tax  required  by  law,  each  as-  neglect  of 
sessor  so  neglecting  shall  forfeit  not  more  than  two  hun-  Appointment 
dred  dollars;  and  the  commissioners  of  the  respective  itIs.^Io^m-^* 
counties  shall  forthwith  appoint  other  persons  to  assess  Jg-^-  ^'  ^^^^^' 
such  taxes  who  shall  take  the  same  oath,  perform  the  same  ^- 1-  JJ- 1  ^^• 
duties  and  be  liable  to  the  same  penalties  as  assessors  of  R-  l.  12.  §  39. 
cities  and  towns. 

Section  40.    If  within  five  months  after  the  receipt  of  J^'^n^^efc°^to 
a  warrant  from  the  treasurer  and  receiver  general  or  of  a  action  for  tax 

not  £lSS6SS6Cl 

certificate  from  the  county  commissioners  requiring  the  1831.64, 
assessment  of  a  tax,  it  is  not  assessed  and  certified  as  re-  R.  s.  8,  §  37. 
quired  by  law,  the  amount  of  the  tax  may  be  recovered  of  p.s.'ii'§  37.' 
the  city  or  town  where  the  neglect  occurs  in  an  action  ^'  ^'  ^^'  ^  ^^' 
of  contract  by  the  treasurer  and  receiver  general  or  the 
treasurer  of  the  county  respectively. 

Section  41.     Assessors  before  making  an  assessment  Notice  of  as- 
shall  give  seasonable  notice  thereof  to  all  persons,  firms  lists  of  prop- 
and  corporations,  domestic  or  foreign,  subject  to  taxation  178^5,  50,  §  9. 
in  their  respective  cities  and  towns.      Such  notice  shall  g.' I.' ii,^§^22. 
be  posted  in  one  or  more  public  places  in  each  city  or  r  s^'/i^^§  Is,* 
town,  or  shall  be  given  in  some  other  sufficient  manner,  |i7f§§\%^.^' 


132 


1888,  323. 
R.  L.  12,  §41. 
1903,  157. 
12  Met.  211. 
8  Cush.  55. 
8  Gray,  511. 
1  Allen,  199. 

100  Mass.  272. 

101  Mass.  89. 
114  Mass.  224. 
131  Mass.  424. 
135  Mass.  566. 
137  Mass.  266. 
154  Mass.  147. 
160  Mass.  217. 
166  Mass.  298. 
179  Mass.  486. 
186  Mass.  361. 
193  Mass.  168. 
189  U.  S.  255. 


Form  of  lists. 
1882,  217,  §  3. 
1894,  294. 
R.  L.  12,  §  42. 


—  to  be  veri- 
fied by  oath. 
1785,  50,  §  9. 
R.  S.  7,  §  20. 
G.  S. 11,  §  23. 
P.  S. 11,  §  39. 
1891,381. 
R.  L.  12,  §  43. 
1  Allen,  199. 
101  Mass.  89. 
131  Mass.  424. 
193  Mass.  168. 


and  shall  require  the  said  persons,  firms  and  corporations 
to  bring  in  to  the  assessors,  before  a  date  therein  specified, 
in  case  of  residents  a  true  list  of  all  their  polls  and  per- 
sonal estate  not  exempt  from  taxation,  and  in  case  of  non- 
residents and  foreign  corporations  a  true  list  of  all  their 
personal  estate  in  that  city  or  town  not  exempt  from  taxa- 
tion, and  may  or  may  not  require  such  list  to  include  their 
real  estate  which  is  subject  to  taxation  in  that  city  or  town. 
It  shall  also  require  all  persons  and  corporations,  except 
corporations  making  returns  to  the  insurance  commis- 
sioner as  required  by  section  nineteen  of  chapter  five  hun- 
dred and  seventy-six  of  the  acts  of  the  year  nineteen  hun- 
dred and  seven,  to  bring  in  to  the  assessors  before  a  date 
therein  specified,  which  shall  not  be  later  than  the  first 
day  of  July  then  following,  unless  the  assessors  for  cause 
shown  extend  the  time  to  the  first  day  of  August,  true  lists 
of  all  real  and  personal  estate  held  by  them  respectively 
for  literary,  temperance,  benevolent,  charitable  or  scien- 
tific purposes  on  the  preceding  first  day  of  May,  or  at  the 
election  of  such  corporation  on  the  last  day  of  its  financial 
year  last  preceding  said  first  day  of  May,  and  to  state  the 
amount  of  receipts  and  expenditures  for  said  purposes 
during  the  year  last  preceding  said  days.  The  notice  shall 
contain  the  provisions  of  section  forty-five. 

Section  42.  The  tax  commissioner  shall  annually  pre- 
pare instructions  for  bringing  in  the  lists  required  by  the 
preceding  section,  and  shall  prescribe  forms  therefor  so 
arranged  that  the  statement  of  the  person,  firm  or  corpora- 
tion bringing  it  in  will  include  all  assessable  property 
held  by  such  person,  firm,  or  corporation,  and  the  assessors 
shall  furnish  blank  lists  containing  such  instructions  and 
forms  to  any  person,  firm  or  corporation  liable  to  taxation. 
The  tax  commissioner  shall  also  cause  forms  for  the  lists 
and  statements  required  by  the  preceding  section  relative 
to  property  held  for  literary,  benevolent,  charitable  or 
scientific  purposes  to  be  printed  and  distributed  to  assessors. 

Section  43.  The  assessors  shall  in  all  cases  require  a 
person,  firm  or  corporation  bringing  in  a  list  to  make  oath 
that  it  is  true.  The  oath  may  be  administered  by  any  of 
the  assessors  or  by  their  secretary  or  head  clerk.  If  the 
person,  firm  or  corporation  bringing  such  list  is  absent 
from  the  place  in  which  the  tax  is  to  be  assessed  during  the 
whole  period  when  such  oath  may  be  made,   it  may  be 


133 

administered  by  a  notary  public,  whose  jurat  shall  be  duly 
authenticated  by  his  seal. 

Section   44.    Such  lists  shall  be  open  to  the  inspec-  inspection  of 
tion  of  the  assessors,  their  assistants  and  clerks  and  of  iIqs.  507,  §  1. 
the  tax  commissioner  and  his  deputy,  but  so  much  of  the  ^"  ^'  ^^'  ^  ^^' 
lists  as  shows  the  details  of  the  personal  estate  to  that  of 
no  other  person  except  by  the  order  of  a  court.       The 
lists  shall  be  preserved  by  the  assessors  until  the  tax  com- 
missioner orders  them  to  be  destroyed. 

Section  45.  A  mortgagor  or  mortgagee  of  real  estate  Returns  by 
may  bring  in  to  the  assessors  of  the  city  or  town  in  which  moItlSee  "'^ 
it  lies,  within  the  time  prescribed  by  the  notice  under  sec-  r,^l.  i2f  §  45'. 
tion  forty-one,  a  statement  under  oath  of  the  amount 
secured  thereon  or  on  each  separate  parcel  thereof,  with 
the  name  and  residence  of  every  holder  of  an  interest 
therein  as  mortgagor  or  mortgagee.  If  such  property  is 
situated  in  two  or  more  places,  or  if  a  recorded  mortgage 
includes  two  or  more  estates  or  parts  of  an  estate  as 
security  for  one  sum,  such  statement  shall  include  an 
estimate  of  the  interest  of  the  mortgagee  in  each  estate  or 
part  of  an  estate.  The  assessors  shall,  from  such  state- 
ment or  otherwise,  ascertain  the  proportionate  interests  of 
the  mortgagor  or  mortgagee  respectively  in  said  estates, 
and  shall  assess  the  same  accordingly.  If,  in  any  year, 
such  statement  is  .not  brought  in,  the  tax  for  that  year 
on  such  real  estate  shall  not  be  invalid  merely  for  the 
reason  that  the  interest  of  the  mortgagee  therein  has  not 
been  assessed  to  him. 

Section  46.     They  shall  receive  as  true,  except  as  to  Lists  to  be 
valuation,  the  list  brought  in  by  each  person,  firm  or  cor-  Salfs.^*^"^' 
poration,  unless,  on  being  thereto  required  by  the  assessors,  j/^g  •  |^§  || ; 
such  person,  firm  or  corporation  refuses  to  answer  on  oath  p|n'||o' 
all  necessary  inquiries  as  to  the  nature  and  amount  of  their  R-  l-  l\f^^' 

property.  SCush.  64.  10  Alien.  100.  112  Mass.  218. 

131  Mass.  424.        134  Mass.  431.  166  Mass.  298.  193  Mass.  522. 

Section  47.     They  shall  ascertain  as  nearly  as  possible  Estimate  of 
the  particulars  of  the  personal  estate,  and  of  the  real  estate  fmiU^of"usf." 
in  possession  or  occupation,  as  owner  or  otherwise  of  any  R.^|;7^§y; 
person,  firm  or  corporation  which  has  not  brought  in  such  p- 1- }}'  1 1[' 
list,  and  shall  estimate  its  just  value,  according  to  their  g'cmh^el  ^^' 
best  information  and  belief.      2  Alien.  594.  130  Mass.  565. 

137  Mass.  270.        152  Mass.  372.  179  Mass.  486.  189  U.  S.  255. 

Section   48.    Such   estimate   shall   be   entered   in   the  ^g-Ve^^h^n 
valuation  book,  and,  except  as  provided  in  sections  forty-  j/^l'I'^ill- 


134 


G.  S. 11,  §  28. 
P.  S.  11.  §42. 
R.  L.  12,  §  48. 

4  Met.  181. 

5  Cush.  97. 
8  Cush.  63. 

Last  assess- 
ment on  ex- 
ecutor, etc.,  to 
be  deemed  the 
valuation  in 
default  of  list. 
1878,  189,  §  3. 
P.  S.  11,  §44. 
R.  L.  12,  §  50. 
154  Mass.  146. 


one  and  seventy-three,  shall  be  conclusive  upon  any  person, 
firm  or  corporation  which  has  not  seasonably  brought  in 
such  list,  unless  such  person,  firm  or  corporation  can  show 
a  reasonable  excuse  for  the  omission. 

Section  49.  After  personal  property  has  been  legally 
assessed  in  any  city  or  town  to  an  executor,  administrator 
or  trustee,  an  amount  not  less  than  that  last  assessed  by 
the  assessors  of  such  city  or  town  in  respect  of  such  prop- 
erty shall  be  deemed  to  be  the  sum  assessable,  until  a  true 
list  of  such  property  is  brought  in  to  the  assessors  in  ac- 
cordance with  the  provisions  of  section  forty-one. 


Valuation. 
1785,  50,  §  1. 
R.  S.  7,  §  24. 
1853,  319,  §  1. 
G.  S.  11,  §  24. 
P.  S.  11,  §45. 
1889,  115. 
R.  L.  12,  §  51. 
4  Gray,  254. 

State,  county 
and  town  taxes 
in  one  assess- 
ment. 
1785.  50,  §  14. 

County  and 

city  taxes  in 

Boston. 

1821,  109,  §  13. 

R.  S.  7,  §  26; 

14,  §  34. 

G.  S. 11,  §  30. 

P.  S.  11,  §47. 

R.  L.  12,  §  53. 

21  Pick.  64. 

Rate  of  tax- 
ation in  cities. 
1885,  178,  §  1; 
312,  §  1. 
1887,  281. 
1893,  247,  445. 

1900,  399. 

1901,  264. 

R.  L.  12,  §  54. 


ASSESSMENT   OF   TAXES. 

Section  50.  The  assessors  of  each  city  and  town  shall 
at  the  time  appointed  therefor  make  a  fair  cash  valuation 
of  all  the  estate,  real  and  personal,  subject  to  taxation 
therein,  and,  in  cities,  the  assessors  may,  in  any  year,  di- 
vide any  ward  into  convenient  assessment  districts. 

152  Mass.  372.  163  Mass.  283. 

Section  51.  The  assessors  may  include  state,  county 
and  town  taxes,  or  any  two  of  them,  in  the  same  assess- 
ment. 1823,  138,  §  2.  R.  S.  7,  §  25. 

G.  S.  11,  §29.  P.  S.  11,  §46.  R.  L.  12,  §52. 

Section  52.  In  the  city  of  Boston  all  taxes  assessed 
for  county  or  city  purposes  may  be  assessed  separately  as 
county  taxes  and  as  city  taxes,  or  under  the  name  of  city 
taxes  only,  as  the  city  council  shall  direct.  The  city  of 
Chelsea  and  the  towns  of  Eevere  and  Winthrop  shall  not 
be  taxed  for  county  purposes. 

Section  53.  The  taxes  assessed  on  property  exclusive 
of  the  state  tax,  county  tax  and  sums  required  by  law  to 
be  raised  on  account  of  the  city  debt  shall  not  in  any 
year  exceed  twelve  dollars  in  any  city  on  every  one  thou- 
sand dollars  of  the  assessors'  valuation  of  the  taxable  prop- 
erty therein  for  the  preceding  year,  said  valuation  being 
first  reduced  by  the  amount  of  all  abatements  allowed 
thereon  previous  to  the  thirty-first  day  of  December  in 
the  year  preceding  said  assessment,  subject  to  the  follow- 
ing provisions :  —  If  the  city  council  of  a  city  which  con- 
tains less  than  one  hundred  thousand  inhabitants  according 
to  the  last  preceding  national  or  state  census  so  deter- 
mines, the  average  of  the  assessors'  valuation  of  the  tax- 
able property  therein  for  the  preceding  three  years,  said 


135 

valuation  for  each  year  being  first  reduced  by  the  amount 
of  all  abatements  allowed  thereon  pievious  to  the  thirty- 
first  day  of  December  in  the  year  preceding  said  assess- 
ment, shall  be  used  to  determine  said  limit  of  taxation 
instead  of  said  assessors'  valuation  of  the  preceding  year. 
In  the  city  of  Boston,  and  in  all  cities  which  contain  one 
hundred  thousand  inhabitants  or  more  according  to  the 
census  aforesaid,  said  average  shall  be  so  used.  In  the 
city  of  Boston,  said  taxes  shall  not  exceed  ten  and  one- 
half  dollars  instead  of  twelve  dollars  as  aforesaid.  Any 
order  or  appropriation  requiring  a  larger  assessment  than 
is  herein  limited  shall  be  void.  The  provisions  of  this 
section  shall  not  affect  any  existing  exemption  from  the 
operation  of  the  corresponding  provisions  of  earlier  laws. 

Section  54.      The  assessors  may,  for  the  purpose  of  Jixes.*^°^ 
avoiding  fractional  divisions  of  the  amount  to  be  assessed  }|||'  i43^§^4" 
in   the   apportionment   thereof,    add  to  that   amount  not  G|ii^§^32* 
more  than  five  per  cent  thereof,   although  the  limit  of  focf-^^'s^^' 
taxation  may  by  such  overlay  be  exceeded.  1893!  445! 

R.  L.  12,  §  55.  126  Mass.  97. 

Section  55.     The  assessors  shall  make,  upon  the  books  Assessors  to 
furnished  under  the  provisions  of  section  fifty-seven,  a  list  tion  list  in 
of  the  valuation  and  the  assessment  thereon,  in  the  fol-  deposi'tTopy  in 
lowing  manner :  —  In  separate  columns  the  valuation  of  i785%o,  §  8. 
the  stock  in  trade  of  each  person,  the  number  and  value  r.^I;  7,^§ '29.^' 
of  his  live  stock  and  the  valuation  of  machinery  used  in  fse^i,  lev!  ^^* 
manufacturing  establishments.    In  another  column  marked  fsgl  g^  ^^• 
"  All  other  ratable  estate  "  the  aggregate  valuation  of  all  is^s;  sot,  §2. 
the   other   personal   estate   shall   be   entered.       The   total  2  Gray,  298. 
amount  of  the  taxable  personal  property  shall  be  shown,  io2m^9>i48. 
but  without  other  detail  or  specification  than  is  provided  ^^'^   -ass.  505. 
herein.      Before  the  taxes   are  committed  for  collection 
they  shall  deposit  the  books,  or  an  attested  copy  thereof, 
in  their  office  or,  if  there  is  no  office,  with  their  chairman, 
for  public  inspection. 

Section  56.  The  first  part  of  the  list  shall  exhibit  List  to  exhibit 
the  valuation  and  assessment  of  the  polls  and  estates  of  residents  and 
the  inhabitants  assessed ;  the  second  part  shall  exhibit  the  1828, 143,  §  5. 
valuation  and  assessment  of  the  estates  of  non-resident  G.'s.'ii,  §  34. 
owners,  and  shall  contain  in  separate  columns,  the  names  r  s^;n^^§  51. 
of  the  non-resident  owners  of  the  property  assessed,  or  ^1  Pici^'^.^^' 
such  description  of  them  as  can  be  given,  their  places  of  l^uen'^'sM^' 
abode,  if  known,  the  description  of  their  estate,  the  true  isfM^g-gls' 
value  of  such  estate,  and  the  tax  thereon.  192  Mass!  273! 


136 


Secretary  of 
common- 
wealth to 
furnish  books 
to  assessors. 
1861,  167,  §  1. 
1879,  72,  §  2. 
P.  S.  11,  §  52. 
1883,41,  §  1. 
1887,  86,  §  2. 
1890,  242,  §  2. 


Section  57.  The  secretary  of  the  commonwealth 
shall  provide  each  city  and  town,  on  or  before  the  first 
day  of  May  annually,  suitable  books  for  the  use  of  the 
assessors  in  the  assessment  of  taxes,  which  shall  contain 
blank  columns,  with  uniform  headings  for  a  valuation  list, 
and  blank  tables  for  aggregates,  in  the  following  form :  — 

1891,65.  1898,507,  §  2..  R.  L.  12,  §  58.  1907,181. 


Form  of  valua- 
tion list. 


Valuation  List  foe  the 


Mat  1,  19 


J,  00  «  *» 

nil 

^  i| 


<  o 

HUM' 

SS5   to    ^   *s 

Ha 


1^ 


«g 


11 


> 


u  a 

5a 


§•« 


S3  i 

ort  a 

0,2  a 


Hi 

III 


1 
s 

a 
o 

li 


si 

ii 

Description,' by  name' 
or  otherwise,  of  each 
and    every    lot    of 
land  owned  by  each 
person. 

Number  of  acres 

or  feet  in  each 

lot  of  land. 

1 

> 

li 

< 

i 

1 
§ 

11 

1=5 

Acres. 

Feet. 

—  of  table  of 
aggregates. 


For  the 


TABLE   OF   AGGREGATES. 
OF  Polls,  Property,  Taxes,  etc.,  as  assessed  May  1,  19 


"it 

ill 

Number   of  non- 
residents   as- 
sessed on  prop- 
erty. 

k 

of 

ii 

{25 

II 

1 

•si 

11 

> 

Individ- 
uals. 

Individ- 
uals. 

t  On 
property. 

Excluding  resi- 
dent bank  stock. 

Buildings,  ex- 
cluding land. 

*  All 
others. 

*  All 
others. 

For  poll 
tax  only. 

Resident  bank 
stock. 

Land,  exclud- 
ing buildings. 

Total. 

Total. 

Total. 

Total. 

Total. 

*  Firms,  corporations,  associations,  institutions,  trustees,  etc. 
-t  On  property ;  the  total  of  the  first  two  columns. 


137 


Tax  for  state,  county 
and  city  or  town 
purposes,  including 
overlayings. 


Dollars. 


On  personal 
estate. 


On  real  estate. 


On  polls. 


Total. 


Cts. 


h 


1^ 


a>  to 

II 


<0    CQ 


g    OB 


as 


II 


n 

ll 


Number. 


Value. 


Section  58.  The  assessors  shall  enter  in  the  books  so 
furnished  the  valuation  and  assessment  of  the  polls  and 
estates  of  the  inhabitants  assessed,  as  directed  in  the  head- 
ings of  the  various  columns  and  as  follows :  — 

Stock  in  trade  shall  include  all  goods,  wares  and  mer- 
chandise at  home  or  abroad,  of  ratable  estate,  whether  paid 
for  or  otherwise.     Machinery  shall  include  steam  engines. 

In  cotton  and  linen  factories  state  number  of  spindles 
and  looms  used  in  each. 

In  woollen  factories  state  number  of  sets  of  cards  used 
in  each. 

State  the  value  of  each  building  described  including 
therein  water-wheels  but  excluding  land  and  water  power 
and  machinery  used  in  the  building. 

In  description  of  lots  of  land  state  the  number  of  quartz- 
sand  beds,  stone  quarries  and  ore  beds  therein. 

Section^  59.  The  assessors  shall  fill  up  the  table  of 
aggregates  by  an  enumeration  of  the  necessary  items  in- 
cluded in  the  lists  of  valuation  and  assessments  required 
by  law,  and  shall  annually,  on  or  before  the  first  day  of 
October,  deposit  in  the  office  of  the  secretary  of  the  com- 
monwealth an  attested  copy  of  the  same,  containing,  — 
First.  The  number  of  residents  assessed  on  property, 
specifying  the  number  of  individuals  and  the  number  of 
firms,  corporations,  associations,  institutions,  trustees,  and 
so  forth.     Second.     The  number  of  non-residents  assessed 


How  blanks  in 
list  shall  be 
filled. 

1861,  167,  §  2. 
1879,  72,  §  1. 
P.  S.  11,  §53. 
1883,  41,  §  2. 
1898,  507,  §  2. 
R.  L.  12,  §  59. 
127  Mass.  502. 
138  Mass.  529. 
143  Mass.  299. 

151  Mass.  227. 

152  Mass.  372. 
185  Mass.  114. 


Assessors  to 
fill  up  table  of 
aggregates  and 
deposit  copy 
with  secretary 
of  common- 
wealth annu- 
ally. 

1861,  167,  §  3. 
1864,  210,  §  2. 
1879,  72,  §  2. 
P.  S.  11,  §54. 

1885,  106. 

1886,  56. 
1887,86,  §  1. 

1890,  242,  §  1. 

1891,  65. 

R.  L.  12,  §  60. 


138 


Assessors 
triennially  to 
deposit  with 
the  secretary 
of  the  com- 
monwealth 
copies  of  valu- 
ation books. 
1861,  167,  §  3. 
1864,  210,  §  1. 
P.  S.  11,  §  55. 
1883.91. 
1894,  318. 
R.  L.  12,  §  61. 


Non-compli- 
ance with 
preceding 
sections. 
1861,  167,  §  6. 
P.S.  11,  §56. 
R.  L.  12,  §  62. 


on  property,  specifying  the  number  of  individuals  and  tlie 
number  of  firms,  corporations,  associations,  institutions, 
trustees,  and  so  forth.  Third.  The  whole  number  of 
persons  assessed,  specifying  the  number  assessed  for  a  tax 
on  property  and  the  number  assessed  for  a  poll  tax  only. 
Fourth.  The  number  of  polls  assessed.  Fifth.  The 
tax  on  each  poll.  Sixth.  The  value  of  personal  estate 
assessed,  specifying  the  value  of  the  same  excluding  resi- 
dent bank  stock,  and  the  value  of  resident  bank  stock. 
Seventh.  The  value  of  real  estate  assessed,  specifying 
the  value  of  buildings  exclusive  of  land  and  of  land  ex- 
clusive of  buildings.  Eighth.  The  total  valuation  of 
assessed  estate  in  the  city  or  town,  l^inth.  The  tax  for 
state,  county  and  city  or  town  purposes,  including  over- 
layings,  specifying  the  amount  assessed  on  personal  estate, 
on  real  estate  and  on  polls.  Tenth.  The  rate  of  total  tax 
per  one  thousand  dollars.  Eleventh.  The  number  of 
horses  assessed.  Twelfth.  The  number  of  cows  assessed. 
Thirteenth.  The  number  of  sheep  assessed.  Fourteenth. 
The  number  of  neat  cattle,  other  than  cows,  assessed. 
Fifteenth.  The  number  of  swine  assessed.  Sixteenth. 
The  number  of  dwelling-houses  assessed.  Seventeenth. 
The  number  of  acres  of  land  assessed.  Eighteenth.  The 
number  and  value  of  fowl  assessed. 

The  city  of  Boston  may  deposit  said  copy  in  the  office 
of  the  secretary  annually  on  or  before  the  first  day  of 
N'ovember. 

Section  60.  The  assessors  of  cities  and  towns,  except 
the  city  of  Boston,  shall,  on  or  before  the  first  day  of 
October  in  the  year  nineteen  hundred  and  four  and  in 
every  third  year  thereafter,  deposit  in  the  office  of  the 
secretary  of  the  commonwealth,  in  books  to  be  by  him 
provided  for  the  purpose,  a  copy  of  the  assessors'  valua- 
tion books  of  those  years,  to  be  by  them  certified  under 
oath.  Said  assessors  shall  also  annually,  on  or  before  the 
first  day  of  October,  and  the  assessors  of  the  city  of  Bos- 
ton, on  or  before  the  first  day  of  November,  in  like  man- 
ner deposit  an  attested  copy  of  the  table  of  aggregates 
required  by  the  provisions  of  the  preceding  section. 

Section  61.  If  the  board  of  assessors  of  any  city  or 
town  neglect  to  comply  with  the  provisions  of  any  of  the 
three  preceding  sections,  each  assessor  so  neglecting  shall 
forfeit  not  more  than  two  hundred  dollars,    [i  Op.  a.  g.  73.1 


139 

Section  62.     The  books  provided  by  the  secretary  of  ^^""^J^lf^^^ 
the  commonwealth  for  the  use  of  the  assessors  shall  con-  :i^hat!'**''' 
tain  a  copy  of  this  and  of  the  seven  preceding  sections,  and 
such  certificates  as  are  required  by  law  to  be  signed  by 
the  assessors,  with  such  explanatory  notes  as  he  considers 
necessary  to  secure  uniformity  of  returns  under  the  sev- 
eral headings.     He  shall  annually  compile  and  cause  to  Annual  com- 
be printed  for  the  use  of  the  general  court  the  aggregate  table  of  aggre- 
returns  from  the  cities  and  towns  arranged  by  counties,  ileT.'iey,  §4. 
so  as  to  exhibit  the  total  valuation  of  the  towns,  cities,  R.L.Vi^^es. 
counties,  and  the  commonwealth. 

Section  63.     The  assessors  shall  enter  upon  the  valu-  Entry  on  vaiu- 

.  .  /.I  ation  list  of 

ation  list,  m  the  appropriate  columns,  alter  the  enumer-  certain 
ation  of  the  persons  and  estates  liable  to  taxation  therein  property, 
contained,  a  statement  and  description  of  all  the  property  p.  s.'ii,§58.' 
and  estate  and  the  fair  ratable  value  thereof,  situated  in  ^*  ^'  ^^'  ^''^^* 
their  respective  cities  or  towns,-  or  which  would  be  tax- 
able there  but  for  the  provisions  of  the  third,  fourth  and 
seventh  clauses  of  section  five,  with  the  names  of  the  per- 
sons or  corporations  owning  the  same  and  the  purpose  for 
which  it  is  used,  which  are  exempted  from  taxation  by  the 
provisions  of  law  aforesaid,  with  a  reference  to  the  law 
by  which  such  exemption  is  allowed. 

Section  64.     The  assessors,  or  other  persons  author-  Oath  of  assess- 
ized  to  assess  the  taxes  in  a  city  or  town,  shall,  at  the  end  tion  list, 
of  said  valuation  list,  subscribe  and  take  the  following  r.  s.'  is,*  §  55, 

oath:  G.  S.  11,  §36.  P.S.  ll,  §59.  R.L.  12.  §65.  1853,319,  §2. 

We  the  assessors,  (or  other  persons  so  authorized,  as  the  case 
may  be,)   of  ,  do  severally  and  solemnly  swear  that  the 

foregoing  list  is  a  full  and  true  list  of  the  names  of  all  persons 
known  to  us,  who  are  liable  to  taxation  in  ,  (here  insert 

the  name  of  the  city  or  town,)  during  the  present  year,  and  that 
the  real  and  personal  estate  contained  in  said  list,  and  assessed 
upon  each  person  in  said  list,  is  a  full  and  accurate  assessment 
upon  all  the  property  of  each  person,  liable  to  taxation,  at  its 
full  and  fair  cash  value,  according  to  our  best  knowledge  and 
belief. 

Section    65.      An  assessor  or  other  person  assessing  Penalty  for 
taxes  in  a  city  or  town  who  omits  to  take  and  subscribe  oath, 
said  oath  shall  be  punished  by  a  fine  of  ten  dollars;    but  §§  i,'2.    '^ 
such  omission  shall  not  render   invalid  a  tax  otherwise  p.' i;  iJ;  f lo." 
legally  assessed.  R.  l.  12,  §.66. 


140 


Tax  list  to  be 
committed  to 
collector,  but 
only  after  bond 
given  and 
approved. 
1785,  50,  §  6; 
70,  §§  1,3. 
1815,  130,  §  4. 
R.  S.  7, 
§§  32,  34. 
G.  S.  11,  §38. 
1879,  157,  §  1. 
P.  S.  11,  §  62. 
R.  L.  12,  §  67. 


—  contents 
and  form. 
1828,  143,  §  6. 
R.  S.  7,  §31. 
G.  S.  11,  §  35. 
1877,  235,  §  1. 
P.  S. 11,  §  61. 
R.  L.  12.  §  68. 
9  Pick.  97. 
2  Gray.  298. 


COLLECTOR  S  LIST  AND  WARRANT. 

Section  66.  The  assessors  shall,  within  a  reasonable 
time,  commit  the  tax  list  with  their  warrant  to  the  col- 
lector of  taxes;  or,  if  no  collector  has  been  chosen,  to  a 
constable,  or,  if  there  is  no  constable,  to  the  sheriff  or 
his  deputy,  for  collection;  but-  the  assessors  of  a  town 
shall  not  commit  a  tax  list  to  the  collector  until  the  bonds 
of  such  collector  and  of  the  town  treasurer  have  been 
given  and  approved  as  required  by  law. 

13  Met.  85.  99  Ma.ss.  472.  130  Mass.  563. 

6  Gray,  387,  502.  124  Mass.  343.  140  Mass.  389. 

Section  67.  The  tax  list  committed  to  the  collector 
shall  be,  in  substance,  as  follows :  — 


Names  and  Residences. 

(Give  sh-eet  and 
number  of  residence.) 


No.  of 
Polls. 


Poll 
Tax. 


Tax  on 

Real 

Estate. 


Tax  on 
Personal 
Property. 


Total. 


Time  when 
paid. 


NON-RESIDENTS. 


Names. 


Residences,  if  known. 


Tax. 


Warrant,  con- 
tents and 
form. 
1785,  50,  §  6: 


R'l 
IX.  is. 

33. 

G.  S. 
P.  S. 


11, 
11. 


§§32, 

39. 
63. 


New  warrant 
to  issue  on  loss, 
etc.,  of  orig- 
inal; effect. 
1799,  83. 
R.  S.8,  §  51. 
G.  S.  11,  §  40. 


Section  68.  The  warrant  shall  specify  the  duties  of 
the  collector  as  prescribed  by  law  in  the  collection  of  taxes, 
the  times  when  and  the  person  to  whom  he  shall  pay  them, 
shall  be  substantially  in  the  form  heretofore  used  and  need 
not  be  under  seal.         r.  l.  12,  §  69.     1  Met.  328.         e  Met.  345. 

13  Met.  85.       99  Mass.  472.       127  Mass.  502.      139  Mass.  388.        140  Mass.  389. 

Section  69.  If  a  warrant  issued,  for  the  collection  of 
taxes  is  lost  or  destroyed,  the  assessors  may  issue  a  new 
warrant  therefor,  which  shall  have  the  same  force  and  effect 
as  the  original  warrant.  p.  s.  ii,  §  64.        r.  l.  12,  §  70. 


Discounts. 

1815,  130, 

§§2,4. 

R.  S.  7,  §§  35, 

36. 

G.  S.  11, 

§§41,42. 

P.  S.  11,  §§  65, 

66. 

R.  L.  12,  §  71. 

13  Gray,  476. 

2  Allen.  594. 


DISCOUNT  AND  INTEREST  ON  TAXES. 

Section  70.  Towns  at  their  annual  meetings  and  city 
councils  of  cities  may  allow  discounts  to  persons  making 
voluntary  payment  of  their  taxes  within  such  periods  of 
time  as  they  determine;  and  the  assessors  shall,  when 
they  commit  their  warrant  to  the  collector,  post  in  one 
or  more  public  places  in  the  city  or  town  notices  of  the 
rates  of  discount,  and  the  collector  shall  make  such  dis- 
count. 


141 

Section  71.     If  a  city,  a  town  or  fire,  water  supply  or  interest; 

,.         .         n  '  •,!•  1   '    1      ^  City  and  town 

improvement  district  fixes  a  time  witnin  wnicn  taxes  as-  taxes, 
sessed  therein  shall  be  paid,  such  city  by  its  city  council,  is78;  185',  §  1. 
and  such  town  or  district  at  the  meeting  when  money  is  p.  s.'ii,§§  67, 
appropriated  or  raised,  may  vote  that  on  all  taxes  remain-  Hqq  ^gg 
ing  unpaid  after  a  certain  time  interest  shall  be  paid  at  a  5\6^Migg.^476. 
specified  rate,  not  exceeding  six  per  cent  a  year,  and  such 
interest  shall  be  added  to  and  be  a  part  of  such  taxes. 

ABATEMENTS. 

Section  Y2.     A  person  aggrieved  by  the  taxes  assessed  f7^8^5,^^^'§*io. 
upon  him  may,  within  six  months  after  the  date  of  his  tax  RS.7,  §§37, 
bill,  apply  to  the  assessors  for  an  abatement  thereof ;    and  g.  s.  11,  §§  43, 
if  they  find  that  he  is  taxed  at  more  than  his  just  propor-  J>^y''iWA| 
tion,  or  upon  an  assessment  of  any  of  his  property  in  ex-  74.  '    ' 
cess  of  its  fair  cash  value,  they  shall  make  a  reasonable  r.  l!  12,  §  73 
abatement.     A  tenant  of  real  estate  paying  rent  therefor  i2Pick^7'. 
and  under  obligation  to  pay  more  than  a  moiety  of  the  5 cuLh^gl^" 
taxes  thereon  may  apply  for  such  abatement.  ^  ^"^^-  ^'  ^^• 

2  Gray,  494.  102  Mass.  348.  150  Mass.  237.  174  Mass.  396. 
8  Gray,  509.  109  Mass.  270.  152  Mass.  372,  596.  175  Mass.  293. 
13  Gray,  321.  114  Mass.  224.  155  Mass.  313.  179  Mass.  486. 

3  Allen,  546.  125  Mass.  348.  159  Mass.  385.  186  Mass.  361. 

12  Allen,  612.        130  Mass.  144.  478.     166  Mass.  216,  193  Ma.ss.  168. 

13  Allen,  lib.        148  Mass.  513.  298,401.  189  U.  S.  255. 

Section  73.    A  person  shall  not  have  an  abatement,  ex-  conditions, 

cept  as  otherwise  provided,  unless  he  has  brought  in  to  the  r.  s.'  7,  §  lo." 

assessors  the  list  of  his  estate  as  required  by  section  forty-  Jiff;  HI'  1 3; 

one.      An  executor,   administrator  or  trustee  after  three  fses",  121!  ^^' 

years  from  the  date  of  his  appointment,  or  a  tenant  of  p^s'^'i^g^sl' 

real  estate  paying  rent  and  under  obligation  to  pay  more  lld^'.^ 

than  a  moiety  of  the  taxes  thereon,  may  have  an  abatement  1894;  354! 

although  no  such  list  was  brought  in.     If  such  list  is  not  4  Pick.  399. 

filed  within  the  time  specified  in  the  notice  required  by  6Cush;477. 

section  forty-one,  no  part  of  the  tax  assessed  upon  the  per-  |  §^^1  log. 

sonal  estate  shall  be  abated  unless  the  applicant  shows  to  sAiiejite! 

the  assessors  a  reasonable  excuse  for  the  delay  or  unless  }?2m|^s'218 

such  tax  exceeds  by  more  than  fifty  per  cent  the  amount  i3i  Mass.  424. 

which  would  have  been  assessed  upon  such  estate  if  the  151  Mass!  228! 

list  had  been  seasonably  brought  in,  and  in  such  case  only  155  mSL'  313.' 

the  excess  over  such  fifty  per  cent  shall  be  abated.     If  the  }|?  mSs!  517! 

applicant  was  not  required  by  said  notice  to  include  his  i76mSs!384.' 

real  estate  in  said  list,  and  has  not  done  so,  he  shall,  if  he  J||  ^^l'  f^|; 
seeks  an  abatement  of  the  tax  on  his  real  estate,  file  with 
his  application  a  list,  verified  as  provided  in  section  forty- 


142 


Costs. 

R.  S.  7,  §  38. 

G.  S.  11,  §44. 


Notice. 
1890,  127,  §  6. 
R.  L.  12,  §  76. 


Appeal  to 
county  com- 
missioners. 
1785,  50,  §§  9, 
10. 

R.  S.  7,  §§  39, 
40. 

1853,  319,  §  3. 
1857,  306,  §  3. 
G.  S.  11,  §§  45, 
46. 

P.  S.  11,§§  71. 
72. 

1882,  218. 
R.  L.  12,  §  77. 
8  Cush.  55. 
6  Allen,  131. 
114  Mass.  224. 
152  Mass.  372, 
696. 

155  Mass.  313. 
159  Mass.  383. 
182  Mass.  598. 


—  to  superior 

court. 

1890,  127,  §§  1, 

2,4. 

R.  L.  12,  §  78. 

152  Mass.  594. 

155  Mass.  313. 

163  Mass.  283. 

175  Mass.  257. 

178  Mass.  469. 

182  Mass.  598. 


Entry  of  ap- 
peal. 

Advancement 
for  speedy  trial. 
1890,  127,  §  4. 
R.  L.  12,  §  79. 
152  Mass.  596. 
155  Mass.  313, 
316. 
175  Mass.  257. 


Commission- 
ers to  hear 
facts. 

1890,  127.  §  5. 
R.  L.  12,  §  80. 


three,  of  his  real  estate,  with  an  estimate  of  the  fair  cash 
value  of  each  parcel. 

SECTioisr  74.  A  person  applying  for  an  abatement  shall 
pay  the  legal  costs  which  accrue  before  it  is  made. 

p.  S.  11,  §  70.  R.  L.  12.  §  75. 

Section  75.  The  assessors  shall,  within  ten  days  after 
their  decision  upon  an  application  for  an  abatement,  give 
written  notice  thereof  to  the  applicant. 

Section  76.  A  person  aggrieved  by  the  refusal  of 
assessors  to  abate  a  tax,  may,  within  thirty  days  after  re- 
ceiving the  notice  provided  in  the  preceding  section,  appeal 
therefrom  by  filing  a  complaint  with  the  clerk  of  the  county 
commissioners,  or  of  any  board  exercising  the  powers  of 
such  commissioners,  for  the  county  in  which  the  property 
taxed  is  situated,  and  if  upon  a  hearing  the  board  finds 
that  the  property  has  been  overrated,  it  shall  make  a  rea- 
sonable abatement  and  an  order  as  to  costs.  If  the  list 
required  to  be  brought  in  to  the  assessors  was  not  brought 
in  within  the  time  specified  in  the  notice  required  by  sec- 
tion forty-one,  the  tax  shall  not  be  abated  unless  the  appel- 
late board  finds  that  there  was  good  cause  for  the  delay  or 
unless  the  assessors  have  so  found  as  provided  in  section 
seventy-three.  ^N'o  costs  shall  be  allowed  to  a  complain- 
ant who  has  failed  to  file  a  list  as  required  by  law. 

Section  77.  A  person  aggrieved  as  aforesaid  may,  in- 
stead of  pursuing  the  remedy  provided  in  the  preceding 
section,  but  subject  to  the  same  conditions,  appeal  to  the 
superior  court  for  the  county  in  which  the  property  taxed 
is  situated  by  entering  a  complaint  in  said  court  on  the 
first  return  day  after  the  expiration  of  thirty  days  from 
the  giving  of  the  notice  required  by  section  seventy-five, 
which  shall  be  heard  and  determined  as  other  court  causes 
by  the  court  sitting  without  a  jury. 

Section  78.  The  complaint  shall  be  heard  at  the  first 
sitting  of  the  court  in  such  county  for  the  trial  of  civil 
causes  after  its  entry,  unless,  at  the  request  of  the  respond- 
ent, a  further  time  is  allowed  by  the  court.  The  superior 
court  or  the  supreme  judicial  court,  if  the  case  shall  be  car- 
ried thereto,  shall  at  the  request  of  the  city  or  town  advance 
the  case  so  that  it  may  be  heard  and  determined  with  as 
little  delay  as  possible. 

Section  79.  The  court  may  appoint  a  commissioner  to 
hear  the  parties  and  report  the  facts,  with  or  without  the 
evidence.    Such  report  shall  be  prima  facie  evidence  of  the 


facts  therein  found.     The  court  shall  allow  such  commis-  175  Mass.  257. 
sioner  a  reasonable  compensation  which  shall  be  paid  by 
the  county. 

Section  80.     If,  upon  a  hearins;,  the  court  finds  that  Abatement 

-  ,     .  1  T     1         'ii         n      1  •    •  J?   or  judgment 

the  complainant  has  complied  with  ail  the  provisions  01  for  appellant 

law  and  has  paid  the  tax  for  which  he  has  been  assessed,  have  been 

it  may  grant  him  a  reasonable  abatement,  and  shall  render  costs, 

judgment  against  the  city  or  town  for  the  amount  thereof,  Jfgs;  H'!'  ^  ^' 

and  for  all  charges  and  interest  on  the  amount  of  the  abate-  e'Aiienfilf.^' 

ment  from  the  date  of  the  payment  of  the  tax.     The  court  i^|  ^^^s.  313, 

may  also,  if  the  complainant  has  filed  a  list  of  his  estate  175  Mass.  257. 
as  required  by  section  forty-one,  allow  him  costs  in  its  dis- 
cretion.    If  no  abatement  is  granted,  judgment  shall  be 
rendered  for  the  city  or  town  for  its  expenses  and  costs, 
which  shall  be  taxed  by  the  court. 

Section  81.    A  person  whose  tax  has  been  abated  shall,  ^|ijj^"[|r" 

if  the  tax  has  been  paid,  be  reimbursed  by  the  city  or  town  lyfl^^o'^Ko 

to  the  amount  of  the  abatement  allowed,  with  interest  from  R.  s.'  7,  §  42. ' 

the  time  of  payment  of  said  tax  and  all  charges  paid  there-  p.'s!  11',  §  75. 

with  except  legal  costs  paid  as  provided  in  section  seventy-  r.  l!  12,  §  82. 

four.  3  Allen,  550.  159  Mass.  385.  13  Gray,  223. 

Section  82.    A  person  whose  tax  has  been  abated  shall  Certificate  of 
be  entitled  to  a  certificate  thereof  from  the  assessors,  clerk  be  given  by 

j»    .-1  .      .  ,1  02  assessors. 

01  the  commissioners  or  other  proper  omcer.  r  s.  7,  §  43. 

p.  S  11,  §  76.  R.  L.  12,  §  83.  159  Mass,  385.  ^-  ^-  ^^'  §  ^^• 

Section  83.     If  a  collector  is  satisfied  that  a  poll  tax  Abatement  of 

,  1  ,  x'  J?        •  1    i_  uncollectible 

or  tax  upon  personal  property,  or  any  portion  oi  said  tax,  taxes,  and 
committed  to  him  or  to  any  of  his  predecessors  in  ofiice  for  cou^torthere- 
collection,  cannot  be  collected  by  reason  of  the  death,  ab-  18^78,  77. 
sence,  poverty,  insolvency,  bankruptcy  or  other  inability  of  p^^g'/j^'s  77 
the  person  assessed  to  pay,  he  shall  notify  the  assessors  f^- 12,  §  84. 
thereof  in  writing,  under  oath,  stating  the  reason  why  such 
tax  cannot  be  collected.     The  assessors,  after  due  inquiry, 
may  abate  such  tax  or  any  part  thereof,  and  shall  certify 
such  abatement  in  writing  to  the  collector;  and  said  cer- 
tificate shall  discharge  the  collector  from  further  obliga- 
tion to  collect  the  tax  so  abated.     But  no  poll  tax  shall  be  PoU  tax  not 
abated,  under  the  provisions  of  this  section,  within  the  year  of  assess- 
calendar  year  in  which  it  is  assessed.  ™^"** 

Section  84.    Whenever  an  abatement  is  finally  made  to  Tax  commis- 
any  corporation  organized  under  the  law  of  this  common-  notified  of 
wealth  and  liable  to  a  corporate  franchise  tax  upon  any  tax  taxelti^ertin 
assessed  by  the  assessors  of  any  city  or  town,  upon  or  in  1904°  4^42?^^. 
respect  of  real  estate,  machinery  or  underground  conduits. 


144 


wires  and  pipes,  the  assessors,  commissioners  or  court  grant- 
ing such  abatement  shall  forthwith  notify  the  tax  commis- 
sioner of  the  commonwealth  thereof,  and  shall  state  in  such 
notice  what  sum  was  determined  by  such  assessors,  com- 
missioners or  court  to  have  been  the  full  and  fair  cash 
value  of  such  real  estate,  machinery  or  underground  con- 
duits, wires  and  pipes  on  the  first  day  of  May  on  which 
the  tax  so  abated  was  originally  assessed. 


Assessment  of 
estates  omitted 
from  annual 
assessment. 
1868,  320. 
1873.  272. 
P.  S.  11,  §  78. 
1886,  85. 
1888, 362. 
R.  L.  12.  §  85. 
130  Mass.  561. 
137  Mass.  272. 


OMITTED    ASSESSMENTS. 

Section  85.  If  the  real  or  personal  estate  of  a  person, 
to  an  amount  not  less  than  one  hundred  dollars  and  liable 
to  taxation,  has  been  omitted  from  the  annual  assessment 
of  taxes  in  a  city  or  town,  the  assessors  shall  between  the 
fifteenth  and  twentieth  days  of  December  next  ensuing 
assess  such  person  for  such  estate.  The  taxes  so  assessed 
shall  be  entered  on  the  tax  list  of  the  collector  who  shall 
collect  and  pay  over  the  same.  Such  additional  assessment 
shall  not  render  the  tax  of  such  city  or  town  invalid  al- 
though its  amount,  in  consequence  thereof,  shall  exceed  the 
amount  authorized  by  law  to  be  raised. 


re-assessment  of  taxes. 


Re-assessment 
of  taxes. 
1859,  118,  §  1. 
G.  S.  11,  §53. 
1881,  304,  §  7. 
P.  S.  11,  §  79. 
R.  L.  12,  §  86. 
13  Allen,  269. 
99  Mass.  32, 
208. 

102  Mass.  73. 
112  Mass.  535. 
121  Mass.  177. 

126  Mass.  97. 

127  Mass.  502. 
129  Mass.  378. 
137  Mass.  274. 
149  Mass.  270. 
165  Mass.  287. 


Collection  of 
re-assessed 
taxes. 
1870,  394. 
P.  S.  11.  §80. 
R.  L.  12,  §  87. 
102  Mass.  72. 
149  Mass.  270. 


Section  86.  Every  tax  except  a  poll  tax,  which  is  in- 
valid by  reason  of  any  error  or  irregularity  in  the  assess- 
ment and  which  has  not  been  paid,  or  which  has  been  re- 
covered back,  may  be  re-assessed  by  the  assessors  for  the 
time  being,  to  the  just  amount  to  which,  and  upon  the  es- 
tate or  to  the  person  to  whom,  it  ought  at  first  to  have  been 
assessed,  whether  such  person  has  continued  an  inhabitant 
of  the  same  city  or  town  or  not.  An  alienation  of  the  real 
estate  assessed  shall  not,  subject  to  the  provisions  relative 
to  a  lien  contained  in  section  thirty-six  of  Part  II.,  defeat 
a  re-assessment,  if  made  within  two  years  after  the  tax 
first  assessed  was  committed  to  the  collector. 

Section  87.  Taxes  re-assessed  under  the  provisions  of 
the  preceding  section  shall  be  committed  to,  and  collected 
and  paid  over  by,  the  collector  for  the  time  being,  in  the 
same  manner  as  other  taxes,  except  that  the  name  of  the 
person  to  whom  they  were  originally  assessed  shall  be  stated 
in  the  tax  list ;  and  the  bond  of  such  collector  shall  apply 
to  such  re-assessed  taxes. 


145 


APPORTIONMENT  OF  TAXES  ON  REAL  ESTATE  SUBSEQUENTLY 

DIVIDED. 

Section  88.    If  real  estate  is  divided  by  sale,  mort^affe,  Apportion- 

..  J.  ^.^.  ^,  •  j-x  X         if        mentoftaxon 

upon  a  petition  lor  partition  or  otherwise  alter  a  tax  nas  real  estate 

T-  Jj.1,  J  i_j"**l_l.  Jl  divided  after 

been  assessed  thereon  and  such  division  has  been  duly  re-  assessment, 
corded  in  the  registry  of  deeds,  the  assessors  at  any  time  R^|.'/f.^§li;' 
before  said  real  estate  has  been  sold  for  payment  of  taxes,  ^-  ^-  •^^'  ^  ^^• 
upon  the  written  request  of  the  owner  or  mortgagee  of  any 
portion  thereof,  shall  apportion  said  tax  and  the  costs  and 
interest  accrued  thereon  upon  the  several  parcels  thereof, 
in  proportion  to  the  value  of  each,  and  only  the  portion  of 
said  tax,  interest  and  costs  so  apportioned  upon  any  such 
parcel  shall  continue  to  be  a  lien  upon  it ;  and  the  owners 
or  mortgagees  shall  be  liable  only  for  the  tax  apportioned 
upon  the  parcel  owned  in  whole  or  in  part  by  them  re- 
spectively. 

Section  89.     Assessors  shall  send  notice  of  the  request  Notice  to 
for  such  apportionment  and  of  the  time  appointed  there-  affected  by  ap- 
for,  by  mail,  to  every  person  interested  in  said  real  estate  i878,  i82.  §  2. 
whose  address  is  known  to  them.  r.  l.  12,  §  89. 

Section  90.     A  person  aggrieved  by  any  action  of  the  Appeal  from 
assessors  in  making  such  apportionment  may  within  seven  men"t'^*^°°" 
days  thereafter  appeal  in  like  manner  as  in  case  of  an  over-  R^s.'/f,^§  st 
assessment,   and  the  decision  upon  such  appeal  shall  be  ^-  ^-  ^'^'  ^  ^^' 
final. 

illegal  assessments. 

Section  91.     If,  by  reason  of  an  erroneous  or  illegal  ^xlf^ud"^ 
assessment  or  apportionment  of  taxes,  a  person  is  assessed  e^^ep*  as  to 

■i  ■,  .      ^  .  1  1  in    illegal  excess. 

more  than  his  due  proportion,  the  tax  and  assessment  shall  i859, 118,  §  4. 
be  valid  except  as  to  the  illegal  excess.  r.  l.  12,  §  91.       P-  s'  11,'  §  84. 

99  Mass.  208.  126  Mass.  97,  98.  127  Mass.  502.  151  Mass.  229. 


ADDITIONAL    DUTIES    OF    ASSESSORS. 

Section  92.     When  a  person  who  is  liable  to  be  taxed  iSrnShfJor- 

for  personal  property  changes  his  domicil,  the  assessors  of  ^^onaiTy*of 

the  city  or  town  in  the  commonwealth  to  which  he  has  re-  persons  chang- 

iinpi'i  •  c     ^  /•!  •  mg  domicil. 

moved  shall  lorthwith  require  oi  the  assessors  oi  the  city  isee,  170. 

or  town  in  which  he  was  last  taxed  a  written  statement  of  p.  s.'ii,'§85. 

any  facts  which  will  assist  in  determining  the  value  of  his  "    '  ^^' 
personal  estate,  and  also  the  amount  for  which  he  was  last 
assessed  therein,  which  information  shall  be  furnished  by 


146 


Returns  to  tax 
commissioner 
of  corporate 
property  and 
amount  of 
taxes  laid. 

1864,  208,  §  1. 

1865.  283, 
§§  1.  14. 

P.  S.  11,  §§86, 

87. 

R.  L.  12. 

1904,  181. 

1906.  271,  §  11 

13  Allen,  391. 


93. 


Assessors  to 

state  cause  of 

diminished 

valuations. 

1864,  210,  §§  3, 

4,6. 

P.  S.  11,  §§  88, 

89. 

R.  L.  12,  §  94. 


said  assessors.  When  the  assessors  of  a  city  or  to\vn  re- 
ceive such  statement  it  shall  be  filed  in  the  office  of  the 
assessors  requiring  such  information  and  shall  be  open  to 
public  inspection;  and  he  shall  not  be  assessed  upon  any 
less  amount  of  personal  estate  than  that  for  which  he  was 
last  assessed,  until  he  has  brought  in  a  list  of  his  personal 
estate.  Whoever  neglects  to  perform  any  duty  imposed 
upon  him  by  the  provisions  of  this  section  shall  be  pun- 
ished by  a  fine  of  not  less  than  fifty  nor  more  than  two 
hundred  dollars. 

Section  93.  Assessors  shall  annually,  on  or  before  the 
first  Monday  of  July,  return  to  the  tax  commissioner  the 
names  of  all  corporations,  except  banks  of  issue  and  de- 
posit, having  a  capital  stock  divided  into  shares,  chartered 
by  the  commonwealth  or  organized  under  the  general  laws 
for  the  purposes  of  business  or  profit  and  established  in 
their  respective  cities  and  towns  or  owning  real  estate 
therein,  and  a  statement  in  detail  of  the  works,  structures, 
real  estate  and  machinery  owned  by  each  of  said  corpora- 
tions and  situated  in  such  city  or  town,  with  the  value 
thereof,  on  the  first  day  of  May  preceding,  and  the  amount 
at  which  the  same  is  assessed  in  said  city  or  town  for  the 
then  current  year.  They  shall  also,  on  or  before  the  first 
Monday  of  August,  return  to  the  tax  commissioner  the 
amount  of  taxes  laid,  or  voted  to  be  laid,  within  said  city 
or  town,  for  the  then  current  year,  for  state,  county  and 
town  purposes.  They  shall  also,  on  or  before  the  first  Mon- 
day of  August,  return  to  the  tax  commissioner  the  names 
of  all  foreign  corporations  which  have  a  usual  place  of 
business  within  said  city  or  town.  If  the  assessors  neglect 
to  comply  with  the  requirements  of  this  section,  each  as- 
sessor so  neglecting  shall  forfeit  one  hundred  dollars. 

Section"  94.  If  the  assessors  of  a  city  or  town  ascer- 
tain that  the  aggregate  valuation  of  such  city  or  town  has 
been  diminished  since  the  first  day  of  May  of  the  preced- 
ing year,  they  shall  return  with  the  table  of  aggregates,  or 
with  the  books,  which  they  are  required  by  sections  fifty- 
nine  and  sixty  to  deposit  in  the  office  of  the  secretary  of 
the  commonwealth,  a  statement  in  writing,  under  oath,  of 
the  causes  which  in  their  opinion  have  produced  such  dim- 
inution. If  the  assessors  neglect  to  comply  with  the  re- 
quirements of  this  section,  each  assessor  so  neglecting  shall 
forfeit  not  more  than  two  hundred  dollars. 


147 

Section  95.    Assessors  shall  annually,  on  or  before  the  Assessors 
first  day  of  October,  make  and  forward  to  the  tax  commis-  turns  to  tax 
sioner  a  statement  showing  the  whole  amount  of  exempted  ll^^Si^ed 
property  entered  upon  the  valuation  lists  of  their  respective  lEu^^Mi^l^. 
cities  and  towns  in  accordance  with  section  sixty-three,  and  R^s.'i^f,^!  90; 
the  amount  in  each  class,  and  stating  separately  the  aggre-  J^^l'  i2^'§y' 
gate  amount  belonging  to  each  of  the  four  classes  embraced 
in  clause  three  of  section  five,  and  such  lists  and  state- 
ments required  by  section  forty-two  relative  to  real  and 
personal  property  exempt  from  taxation  under  clause  three 
of  section  ^ve  as  have  been  received  by  them. 

Section  96.    Assessors  of  each  city  or  town  shall  annu to  make  re- 
ally, on  or  before  the  first  Monday  of  August,  return  to  the  commissioner 
tax  commissioner  the  aggregate  amount  of  its  assets,  and  hidebSdiSs 
the  amount  of  its  indebtedness,  for  which  notes,  bonds  or  1870/76.' 
similar  evidences  of  debt,  the  payment  of  which  is  not  pro-  fgg^g  Yas^  §2 
vided  for  by  the  taxation  of  the  then  current  year,  were  ^-  ^-  ^2,  §  96. 
outstanding  on  the  first  day  of  May  then  last  preceding, 
with  a  concise  statement  of  the  various  purposes  for  which 
such  indebtedness  was  incurred,  the  amount  incurred  for 
each  purpose  and  the  amount  of  each  sinking  fund  estab- 
lished.   If  in  any  case  in  which  a  sinking  fund  is  required 
by  law  no  sinking  fund  has  been  established,  the  return 
shall  state  whether  action  has  been  had  under  the  provi- 
sions of  section  thirteen  of  chapter  twenty-seven  of  the 
Eevised  Laws,  and  the  amount  raised  and  applied  there- 
under for  the  year  last  preceding  said  first  day  of  May. 

Section  97.     Assessors  shall,  upon  application  to  any  —to  certify 
one  of  them  by  a  person  assessed  therein,  give  to  him  a  pSrSns^of  tax 
certificate  stating  what  portion  of  the  whole  amount  of  his  SI!county 
tax  is  assessed  as  state  tax,  county  tax  and  town  tax,  re-  pSjpSls^ 
spectively ;  and  in  such  case  the  collector  shall  receive  and  p^  s^'n^,^§  93^; 
receipt  for  either  of  such  taxes  separately,  or  for  all  to-  f37^Mifs^27J 
gether,  as  may  be  desired  by  the  tax  payer;  but  the  state 
tax  assessed  upon  poll  and  property  and  the  county  tax  so 
assessed,   shall  each   constitute  an  entire  and  indivisible 
tax. 

responsibility  and  compensation  of  assessors. 

Section  98.     Assessors  shall  not  be  responsible  for  the  Liability  of 
assessment  of  a  tax  assessed  by  them  in  pursuance  of  a  ilflfiss,  §  5. 
vote  for  that  purpose,  certified  to  them  by  the  clerk  or  other  r.^|; -Jf §44. 


148 


G.  S.  11,§51. 
1872,  310. 
P.  S.  11,  §94. 


Compensation. 
1785,  50,  §  2. 
1834,  99. 
R.  S.  7,  §  45. 
1855,  224. 
G.  S.  11,  §  52. 
1873,  156. 


proper  officer  of  a  city,  town  or  fire  district,  except  for  the 
want  of  integrity  and  fidelity  on  their  own  part. 


R.  L.  12,  §  98. 

4  Pick.  399. 

5  Pick.  451,  498. 

Section  99. 


11  Met.  339. 
4  Gray,  42. 
3  Allen,  410. 


4  Allen,  382. 

97  Mass.  424. 

98  Mass.  469. 


99  Mass.  208. 
119  Mass.  77. 
125  Mass.  553. 


Each  assessor  shall  be  paid  by  his  city  or 
town  two  dollars  and  fifty  cents  a  day  for  every  whole  day 
in  which  he  is  employed  in  that  service,  and  such  addi- 
tional compensation  as  the  city  or  town  shall  allow. 


p.  S.  11,  §  95. 
R.  L.  12,  §  99. 


3  Met.  431. 
3  Allen,  409. 


4  Allen,  382. 
129  Mass.  577. 


Apportion- 
ment of  state 
tax  by  tax 
commissioner. 
1881,  163,  §  1. 
P.  S.  11,  §  96. 
R.  L.  12,  §  100. 


Tax  commis- 
sioner to  be 
supplied  with 
returns  of  as- 
sessors. 
To  prepare 
abstracts,  etc. 
1881,  163, 
§§  1,  2. 
P.  S.  11,  §  97. 
R.  L.  12,  §  101. 


Basis  of  appor- 
tionment. 


APPORTIONMENT    OF    STATE    TAX. 

Section  100.  The  tax  commissioner  shall,  before  the 
first  day  of  January  in  the  year  nineteen  hundred  and  four 
and  before  the  first  day  of  January  in  every  third  year 
thereafter,  prepare  and  report  in  print  to  the  general  court, 
within  the  first  week  of  its  then  next  succeeding  session, 
an  equalization  and  apportionment  upon  the  several  cities 
and  towns,  of  the  number  of  polls,  the  amount  of  property, 
and  the  proportion  of  every  one  thousand  dollars  of  state 
or  county  tax,  including  polls  at  one-tenth  of  a  mill  each, 
which  should  be  assessed  upon  each  city  and  town. 

Section  101.  Said  commissioner  shall  from  time  to 
time  be  supplied  by  the  secretary  of  the  commonwealth 
with  the  returns  of  assessors  required  by  sections  fifty-nine 
and  sixty.  He  shall  cause  abstracts  to  be  prepared,  show- 
ing the  value,  above  works,  structures,  real  estate,  machin- 
ery, underground  conduits,  wires  and  pipes  locally  taxed, 
of  shares  in  corporations  organized  in  this  commonwealth, 
and  national  banks,  held  by  residents  of  each  city  and 
town  and  not  included  in  the  local  assessment.  He  may 
require  from  state,  city  and  town  officers  such  further  re- 
turns and  statements  relative  to  the  amount  and  value  of 
taxable  property  in  the  several  cities  and  towns  as  in  his 
judgment  may  be  necessary.  He  shall  to  the  best  of  his 
judgment  and  discretion  prepare  said  equalization  and  ap- 
portionment upon  the  basis  of  the  returns  and  statements 
herein  provided  for  and  authorized. 


149 


Pakt  II. 

COLLECTION  OF  TAXES. 
DEFINITIONS. 

Section  1.     Terms  used  in  this  act  shall,  unless  other  Definitions. 

1  7ft  Pi    70     X  7 

meaning  is  clearly  apparent  from  the  context,  or  unless  r.  s.'s,  §24.' 
thej  are  inconsistent  with  the  manifest  intent  of  the  legis-  isrg'.el'.^  ^^' 
lature,  be  construed  as  follows:  fsss'.sl'o^f 35 

"  Collector  "  shall  mean  a  person  receiving  a  tax  list  J|^2. 168. 
and  a  warrant  to  collect  the  same.  iqoo'I'qo' 

"  Publication  "  as  applied  to  any  notice,  advertisement  i90i!  losi  150. 
or  other  instrument,  the  publication  of  which  is  required  i85  Mass.  137. 
by  laAV,  shall  mean  the  act  of  printing  it  for  three  succes- 
sive weeks  in  a  newspaper  published  in  the  city  or  town, 
if  any,  otherwise  in  the  county,  where  the  land  or  other 
property  to  which  the  notice  or  other  instrument  relates  is 
situated.  The  last  publication  shall  be  made  at  least  one 
week  prior  to  the  date  stated  for  the  occurrence  of  the 
event  to  which  the  publication  relates. 

^'  Registry  of  deeds  ''  shall  mean  the  registry  of  deeds 
for  the  county  or  district  in  which  the  land  taxed  lies. 

"  Service  "  as  applied  to  any  notice,  summons,  demand 
or  other  paper  shall  mean  delivering  it  or  a  copy  to  the 
person  for  whom  it  is  intended,  or  leaving  it  or  a  copy  at 
his  last  and  usual  place  of  abode  or  of  business,  or  sending 
it  or  a  copy  by  mail  postpaid  addressed  to  him  at  his  last 
and  usual  place  of  abode  or  of  business  or,  if  such  notice, 
summons,  demand  or  other  paper  relates  to  taxes  upon 
land,  posting  it  or  a  copy  conspicuously  in  some  conven- 
ient and  public  place  in  his  precinct  and  sending  a  copy 
by  mail  postpaid  addressed  to  him  at  the  city  or  town  in 
which  such  land  lies.  Such  service  shall  be  sufficient 
whether  made  by  the  collector  of  taxes  holding  office  or  by 
any  predecessor. 

The  affidavit  of  the  collector  or  deputy  collector  serving 
the  notice,  summons,  demand  or  other  paper  of  the  man- 
ner of  service  shall  be  kept  on  file  in  the  office  of  the  col- 
lector, and  shall  be  prima  facie  evidence  that  the  same  was  . 
so  served. 


150 


Collection  and 
payment  over 
of  taxes. 
Return 
thereof. 
R.  S.  7,  §  34; 
8,  §§  1,33. 
G.  S.  12,  §  1. 
P.  S.  12,  §  1. 

1887.  110,  §  4. 

1888,  390, 

1897,  126,  §  1. 
R.  L.  13,  §  2. 

126  Mass.  476. 

127  Mass.  405. 


Notice  of  tax 
to  tax  payer. 
1877,  235,  §  1. 
P.  S.  12,  §  2. 

1888,  390,  §  2. 

1889,  334,  §  1. 
R.  L.  13,  §  3. 
185  Mass.  137. 


Collector  to 
keep  books  of 
account. 

1887,  110,  5  2. 

1888,  390,  §  3. 

1889,  334,  §  2. 
R.  L.  13,  §  4. 


—  to  keep 
cash  book. 

1887,  110,  §  1. 

1888,  390,  §  4. 
R.  L.  13,  §  5. 


Account  books, 
how  provided. 
To  be  open  to 
inspection. 

1887,  110,  I  3. 

1888,  390,  §  5. 
1897,  126,  §  2. 
R.  L.  13,  §  6. 


DUTIES    OF    COLLECTORS. 

Section-  2.  Every  collector  of  taxes,  constable,  sheriff 
or  deputy  sheriff,  receiving  a  tax  list  and  warrant  from 
the  assessors,  shall  collect  the  taxes  therein  set  forth,  and 
pay  over  the  same  to  the  city  or  town  treasurer  according 
to  the  warrant,  and  shall  make  written  return  thereof  with 
his  tax  list  and  of  his  doings  thereon  at  such  times  as  the 
assessors  shall  in  writing  require.  In  towns  he  shall,  on  or 
before  the  fifth  day  of  each  month,  pay  over  to  the  town 
treasurer  all  money  received  by  him  during  the  preceding 
month  on  account  of  taxes. 

Section  3.  The  collecfor  shall  forthwith,  after  receiv- 
ing a  tax  list  and  warrant,  send  notice  to  each  person  who 
is  assessed,  resident  or  non-resident,  of  the  amount  of  his 
tax.  If  such  notice  is  sent  by  mail,  it  shall  be  postpaid 
and  shall  be  directed  to  the  city  or  town  in  which  the 
assessed  person  resided  on  the  first  day  of  May  of  the  year 
in  which  the  tax  was  assessed,  and,  if  he  resides  in  a  city, 
it  shall,  if  possible,  be  directed  to  the  street  and  number 
of  his  residence.  If  he  is  assessed  for  a  poll  tax  only,  the 
notice  shall  be  sent  on  or  before  the  second  day  of  Septem- 
ber of  the  year  in  which  the  tax  is  assessed.  An  omission 
to  send  such  notice  shall  not  affect  either  the  validity  of  a 
tax  or  of  the  proceedings  for  collecting  it. 

Section  4.  He  shall  make  and  keep  in  the  book  con- 
taining the  tax  list  committed  to  him  by  the  assessors, 
against  the  name  of  every  person  assessed  for  a  tax,  en- 
tries showing  the  disposition  thereof,  whether  re-assessed, 
abated  or  paid,  and  the  date  of  such  disposition. 

Section  5.  He  shall  also  keep  a  cash  book,  in  which 
he  shall  enter  all  sums  of  money  paid  to  him,  as  they  are 
received,  specifying  the  total  amount  of  tax,  abatements 
allowed,  discount  allowed,  all  interest  charged,  the  total 
amount  received  and  the  date  of  receipt.  He  shall  also 
enter  therein  the  date  and  amount  of  every  payment  and 
disbursement  made  by  him,  and  to  whom  paid,  with  such 
other  matters  as  the  city  or  town  may  require. 

Section  6.  All  books  kept  by  the  collector  shall  be  fur- 
nished by,  and  be  the  property  of,  the  city  or  town,  and 
shall  at  all  reasonable  times  be  open  to  examination  by  the 
auditor  of  such  city  or  town  or  by  any  other  agent  thereof 
duly   authorized  for  that   purpose.      The  collector  shall, 


151 

upon  demand  by  the  selectmen,  exhibit  to  them  or  to  any 
persons  whom  they  may  designate  at  any  time  during  or- 
dinary business  hours,  the  books,  accounts  and  vouchers 
relating  to  taxes  committed  to  him  for  collection  and  to 
his  receipts  and  payments  on  account  of  taxes;  and  they, 
or  the  persons  designated  by  them,  shall  have  full  oppor- 
tunity to  examine  said  books,  accounts  and  vouchers,  and 
to  make  copies  and  extracts  therefrom. 

Section  7.    A  collector  shall,  within  three  months  after  Deposifof  ac- 
his  resignation  of,  or  retirement  or  removal  from,  the  office  retiring,  etc.,  -g 
of  collector,  deposit  with  the  clerk  of  the  city  or  town  in  dty^Sr^town  ' 
which  he  held  such  office  all  his  accounts,   records   and  fio^',  370, 
papers,  except  his  warrant,  which  relate  to  the  assessment  ^  i,,^^^  §^7 
and  collection  of  taxes  in  such  city  or  town,  and,  when  all 
the  taxes  which  have  been  committed  to  him  have  been 
collected  or  abated,  or,  in  any  event,  at  the  end  of  three 
years  from  the  date  of  their  commitment  to  him,  he  shall 
so  deposit  all  such  accounts,  records  and  papers  and  his 
warrant. 

Sectiois'  8.     The  executor  or  administrator  of  a  person  —by  executor, 
who  was  or  had  been  a  collector  shall,  within  three  months  ce^'ed  coT- 
after  his  appointment,   deposit  all  the  accounts,  records,  ^usT/^q,  §  5. 
papers  or  unsettled  tax  lists  which  come  into  his  posses-  r.^s.'I.^mi.' 
sion,  relating  to  the  assessment  and  collection  of  taxes,  p|J|'|||' 
with  the  clerk  of  the  city  or  town  to  which  they  pertain ;  if^s,  390,  §  92. 

-,  ,  .,  .  Ill         loy^,  d7U,  §  6. 

and  any  other  person  into  whose  possession,  upon  the  death,  R.  l.  13,  §  8. 
resignation,  retirement  or  removal  of  a  collector  from  office 
such  accounts,  records,  papers  or  unsettled  tax  lists  may 
come,  shall  forthwith  deposit  them  with  the  clerk  of  such 
city  or  town. 

Section"  9.    If  the  collector  has  an  office  for  the  deposit  ^c^ ''°^^^*'*°'^'' 
of  records  and  the  transaction  of  his  official  business,  the  Jf^L'iI^'sg^' 
accounts,  records  and  papers  otherwise  required  to  be  de- 
posited with  the  city  or  town  clerk  shall  be  deposited  in 
said  office. 

Section  10.     A  city  or  town  clerk,  or  collector,  who  Demand  for 

inn  T  Ti  /•  .  1  tax  books  and 

snail  have  knowledge  01  any  accounts,  records  or  papers  accounts,  by 
relating  to  taxes  in  his  city  or  town  which  should  be  in  7892^3 7(f,^r6. 
his  custody,  shall  demand  them  of  any  person  having  them.  ^-  ^-  ^^'  ^  ^^• 

Section  11.     A  collector,  former  collector  or  an  execu-  Penalty  for 
tor  or  administrator  of  a  deceased  collector  who  refuses  or  "^nSon^of  t^ax 
neglects  to  perform  any  duties  required  by  the  four  pre-  i892?370,  §  7. 
ceding  sections,  or  any  person  having  in  his  possession  any  ^-  ^-  ^^'  ^  ^^- 


152 

such  accounts,  records  or  papers,  who,  after  demand  made 
by  the  clerk  or  collector  entitled  by  law  to  the  custody 
thereof,  wrongfully  detains  them,  shall  forfeit  not  more 
than  five  hundred  dollars. 
Penalty  for  fail-  Section  12.  Evcry  collcctor  who  fails  monthly  to  pay 
to  pay  over       ovcr  to  the  towu  treasurer  the  taxes  collected  by  nim,  as 

taxes  or  to  ex-  •        i    i  .  •  ,  i  i       .  j*  , 

hibit  accounts.   rcQuired  DV  scctiou  two,  or  wno  nesilects  or  reiuses  to  ex- 

R.  l!  13,  §  12!    hibit  his  books,   accounts  and  vouchers  to  the  selectmen 

when  required  by  them,  under  the  provisions  of  section 

six,  shall  be  punished  by  a  fine  of  not  more  than  three 

hundred  dollars. 

Completion  of        Section  13.     The  collcctor  shall,  unless  removed  from 

lector  after       office  or  uuless  his  tax  list  has  been  transferred  to  his  suc- 

of^erm'.^'^         cessor,  complctc  the  collection  of  the  taxes  committed  to 

R.  s.'s,  §2. '     him,  notwithstanding  the  expiration  of  his  term  of  office. 

isel",  lis!  I'lo.  He  shall  be  allowed  the  following  charges  and  fees  and 

1881,'  138',  I  2^'  ^^  other,  which  after  they  have  accrued,  shall  be  severally 

36^47^'  ^^  ^'    ^^ded  to  the  amount  of  the  tax: 

1888  390,  §§  7,       J'or  ail  arrest,  one  dollar  and  actual  travelling  expenses 
1889, 334,'  §  3.    incurrcd  in  making  such  arrest : 

1890,  331.  §  2.  -r^  ^^  ^  ^    ' 

1894,  537,  §  5.        ±  or  a  sumuious,  twenty  cents ; 
1907!  427.     ■        For  a  warrant  to  distrain  or  arrest,  fifty  cents ; 
119  Mass!  124.        For  a  copy  of  warrant   and  certificate  under  section 
twenty-four,  one  dollar; 

For  preparing  advertisement  of  sale,  fifty  cents; 

For  advertisement  of  sale  in  newspapers,  the  cost 
thereof ; 

For  posting  notices  of  sale,  fifty  cents  for  each  parcel 
of  real  estate  seized  or  lot  of  goods  distrained ; 

For  distraining  goods,  one  dollar  and  the  cost  thereof ; 

For  selling  goods  distrained,  the  cost  thereof; 

For  obtaining  affidavit  of  disinterested  person,  one  dol- 
lar; 

For  recording  affidavit,  the  register's  fees ; 

For  preparing  deed,  two  dollars ; 

For  each  hour's  time  actually  expended  in  selling  as 
certified  by  him  under  the  provisions  of  section  fifty,  thirty 
cents ; 

For  service  of  demand  and  notice  under  the  provisions 
of  section  fifty-four,  if  served  in  the  manner  required  by 
law  for  the  service  of  subpoenas  upon  witnesses  in  civil 
cases,  fifty  cents  and  travel  as  allowed  by  chapter  two 
hundred  and  four  of  the  Revised  Laws. 


153 

Section  14.     The  collector  shall,  before  selling  the  land  Jix'^o'blwe. 

of  a  resident,  or  distraining  the  goods  of  any  person,  or  R^l'g^il^- 

arresting  him  for  his  tax,  serve  on  him  a  statement  of  the  g.  |.  12,  §  3. 

amount  thereof  with  a  demand  for  its  payment.     If  the  1888. 390,  §'8. 
,    .       J.      ,  J  .  ^.-^  1889, 334,  §  4. 

heirs  01  a  deceased  person,  co-partners  or  two  or  more  per-  r.  l.  13,  §  14. 

sons  are  jointly  assessed,  service  need  be  made  on  only  one  185  Mass.  is?, 
of  them.  Such  demand  for  the  tax  upon  land  may  be  made 
upon  the  person  occupying  the  same  upon  the  first  day  of 
May  of  the  year  in  which  the  tax  is  assessed.  If  a  mort- 
gagee has  given  notice  under  the  provisions  of  section 
thirty-seven,  such  demand  shall  be  served  upon  the  mort- 
gagee instead  of  the  owner  or  occupant.  'No  demand  need 
be  made  on  a  non-resident  owner  of  land,  nor,  except  as 
herein  provided,  on  a  mortgagee. 

Section  15.     The  collector  may,  before  making  a  de-  Summons  to 
mand  for  the  payment  of  a  tax  which  is  due  from  any  per-  SemLd,  when. 
son,  serve  a  summons  on  him,  stating  therein  the  amount  liil;  334;  1 1^" 
due  and  that  unless  the  same,  with  twenty  cents  more  for  r.^l.'i3,^§\5' 
the  summons,  is  paid  within  ten  days,  he  will  proceed  to 
collect  it  according  to  law. 

Section  16.     If  the  assessors  are  of  opinion  that  the  Collection  from 
credit  of  a  person  taxed  is  doubtful  or  that  he  is  about  doubt^uf 
to  leave  the  commonwealth,  they  may,  by  a  special  war-  irssfVo,  §  2. 
rant,   direct  the  collector   forthwith,   without   demand  or  r/s.'8^§'i2^* 
notice,  to  compel  payment  by   distress  or  imprisonment,  f^^^  ^|g§  ^^ 
whether  the  tax  is  payable  immediately  or  at  a  future  day,  P; s'12.  §  5. 

T        '       .    ^  ,  .^'^         .  '^  ''^    1888, 390,  §  9. 

by  instalments  or  otherwise.  R.  l.  13,  §  le. 

Section  17.    If  a  person  claims  the  benefit  of  an  abate-  Person  daim- 

ment,  he  shall  exhibit  to  the  collector  demanding  his  taxes  to^eJhfbft^e?- 

the  certificate  of  such  abatement  authorized  by  the  provi-  k  s^*l,  m'^^^^' 

sions  of  section  eighty-two  of  Part  I. ;  and  he  shall  be  liable  p|-  J|'  1 1- 

to  pay  all  costs  and  officers'  fees  incurred  before  exhibit-  i?^^'?^^'J,l^- 

■y  '  r*  K.  Jj.   13,   §    17. 

mg  such  certificate.  9  Met.  503. 

Section  18.     If,  in  the  assessors'  lists  or  in  their  war-  Collection  if 
rant  and  list  committed  to  the  collector,  there  is  an  error  nlmeTn^war- 
in  the  name  of  a  person  taxed,  the  tax  assessed  to  him  may  r."s.  8,  §  5. 
be  collected  of  the  person  intended  to  be  assessed,  if  he  is  p;  |;  J|;  |  f; 
taxable  and  can  be  identified  by  the  assessors.  ^^£'  il^'g^il^- 

6  Met.  474.  12  Cush.  56.  127  Mass.  502. 

7  Gray,  127.  97  Mass.  323.  191  Mass.  576. 

Section  19.     After  the  delivery  of  a  tax,   including  Part  payment 
assessments  for  betterments  or  other  purposes  but  not  in-  1899^394,  §§1, 
eluding  a  poll  tax,  to  a  collector  for  collection,  the  owner  W  13  §  jg 
of  the  estate  or  person  assessed  or  a  person  in  behalf  of 


154 

said  owner  or  person  may  tender  to  the  collector  not  less 
than  twenty-five  per  cent  of  the  tax  which  shall  be  re- 
ceived, receipted  for  and  applied  toward  the  payment  of 
the  tax.  If  in  any  court  it  shall  be  determined  that  the 
tax  is  more  than  the  amount  so  paid,  judgment  shall  be 
entered  for  such  excess  and  interest  upon  the  amount 
thereof  to  the  date  of  the  judgment,  and  on  the  amount 
paid  to  the  date  of  the  payment,  with  costs  if  otherwise 
recoverable.  The  part  payment  authorized  by  this  section 
shall  not  aifect  a  right  of  tender,  lien  or  other  provision 
of  law  for  the  recovery  of  the  amount  of  such  tax,  or  in- 
terest or  costs  thereon,  remaining  due,  but  if  the  part  pay- 
ment is  more  than  the  tax,  as  finally  determined,  the  ex- 
cess, without  interest,  shall  be  repaid  to  the  person  who 
paid  it. 
Pu°rn!sh°Sate-  Section  20.  The  collcctor  of  taxes  for  any  city  shall, 
ment  of  taxes    qu  application  in  writing  by  any  person,  and  within  two 

fl.ncl  fLSSBSS"  O  «/  V        X  / 

merits  consti-  days  thereafter,  furnish  to  any  such  applicant  a  statement 
therefon'^  ^^^^  in  Writing  of  all  taxes  and  other  assessments  which  at  the 
§§  1/2.  '  time  constitute  liens  on  the  parcel  of  real  estate  specified 
in  such  application  and  are  payable  on  account  of  such  real 
estate.  Such  statement  shall  be  itemized  and  shall  show 
the  amount  or  amounts  then  payable  to  the  city  on  account 
of  all  such  taxes  and  assessments  so  far  as  such  amounts 
are  fixed  and  ascertained,  and  if  the  same  are  not  then 
ascertainable,  it  shall  so  be  expressed  in  the  statement. 
Any  officer  or  board  of  any  city  doing  any  act  towards 
establishing  any  such  tax,  assessment,  lien  or  charge  upon 
any  real  estate  in  such  city  shall  transmit  a  notice  of  such 
act  to  the  collector  of  taxes  of  such  city.  Such  collectors 
shall  charge  one  dollar  for  each  statement  so  issued,  and 
the  money  so  received  shall  be  paid  into  the  city  treasury. 

COLLECTION    BY    DISTRESS. 

Sde*forMxes.  Sectio^-  21.  If  a  pcrsou  refuses  or  neglects  to  pay  his 
F-r'^QT^n  T«      tax  for  fourteen  days  after  demand,  the  collector  shall  with- 

17»5,  50,  §  6.  111  1  IT 

i84fi'  %\  ^s  ^^^^  unnecessary  delay  levy  the  same  by  distress  or  seizure 
G.  s.'i2,  §7.  '  and  sale  of  his  goods,  including  any  share  or  interest  he 
1888, 390,  §12.  may  have  as  a  stockholder  in  a  corporation  incorporated 
f'MeLdbl.^^'  under  authority  of  this  commonwealth  or  under  the  laws 
i2?Masl.^35i.  ^^  ^^^^  United  States  and  located  or  having  a  general  office 
126  Mass.  101.    ij2  this  commouwcalth ;  but  excluding  the  tools  or  imple- 


155 

ments  necessary  for  his  trade  or  occupation,  beasts  of  the 
plough  necessary  for  the  cultivation  of  his  improved  land, 
military  arms,  utensils  for  housekeeping  necessary  for  up- 
holding life,  and  bedding  and  apparel  necessary  for  him- 
self and  family. 

Sectio]^  22.     The  collector  shall  keep  the  goods  dis-  Detention, 
trained,  at  the  expense  of  the  owner,  for  four  days  at  least,  nss^o^te; 
and  shall,  within  seven  days  after  the  seizure,  sell  the  same  i79i,l2,  §  3. 
by  public  auction  for  payment  of  the  tax  and  charges  of  G.i.i2fft. 
keeping  and  sale,  first  posting  notice  of  the  sale  in  some  fgg|-  ^g^Q^  ^^g 
public  place  in  the  city  or  town  at  least  forty-eight  hours  fiyj^^^fgl  ^^* 
prior  thereto.  i3  Met.  85. 

113  Mass.  40.  126  Mass.  101.  127  Mass.  502. 

Section  23.     The  collector  may  once  adjourn  such  sale  Adjournment 
for  not  more  than  three  days,  and  he  shall  forthwith  post  r.  s.  8,  §  9. 
a  notice  of  such  adjournment  at  the  place  of  sale.  p.' s.' 12' §  16. 

1888,  390,  §  14.  R.  L.  13,  §  22. 

Section  24.     The  seizure  of  a  share  of  stock  or  other  Seizure  and 

interest  in  a  corporation  may  be  made  by  leaving  with  its  i846, 195,  '^^  * 

clerk,  treasurer  or  cashier,  if  there  is  such  officer,  other-  g.  s'.  12, 

wise  with  any  officer  or  person  who  has  at  the  time  the  ys!^i2^§§  n, 

custody  of  its  books  and  papers,  an  attested  copy  of  the  Jfgg  390, 

warrant,  with  a  certificate  thereon,  under  the  hand  of  the  ||  i?'i3^'§  23 

collector,  statin^:  the  tax  which  the  stockholder  is  liable  to  f^^ush  io 

■111  n   T    '  c  -I  ^  ^  ^^  t/Usn.  ddo. 

pay,  and  that  because  01  his  reiusal  or  neglect  to  pay,  the 
collector  has  seized  such  share  or  interest.  The  sale  thereof 
shall  be  made  in  the  manner  above  prescribed  for  the  sale 
of  goods  by  collectors,  and  shall  also  be  subject  to  the  pro- 
visions of  sections  forty-nine  and  fifty  of  chapter  one  hun- 
dred and  seventy-seven  of  the  Revised  Laws. 

Section  25.     If  a  person  is  taxed  for  land  in  his  occu-  Recovery  of 
pation,  but  of  which  he  is  not  the  owner,  the  collector,  to^p^erJonTo^t 
after  demand  for  payment,  may  levy  the  tax  by  distress  ?Iied  t^iK 
and  sale  of  the  cattle,  sheep,  horses,  swine  or  other  stock  ^^i'J^^Ilt, 
or  produce  of  such  estate,  belonging  to  the  owner  thereof,  ^^-g  ^^  g  21. 
which,  within  nine  months  after  such  asses^ent  has  been  p- s.  12' §  23 
committed  to  him,  may  be  found  upon  the  premises,  m  the  R.  l.  13,  §  24. 
same  manner  as  if  such  stock  or  produce  were  the  prop- 
erty of  the  person  so  taxed ;  but  such  demand  for  payment 
need  not  be  made  if  the  person  on  whom  the  tax  is  assessed 
resided  within  the  precinct  of  the  collector  at  the  time  of 
the  assessment,  and  subsequently  removes  therefrom  and 
remains  absent  three  months. 


156 


Surplus  pro- 
ceeds to 
owner. 
1785,  70,  §  2. 
R.  S.  8,  §  10. 
G.  S.  12,  §  12. 
P.  S.  12,  §  13. 


Section"  26.  The  collector  shall  upon  demand  give  an 
account  in  writing  of  every  sale  on  distress  or  seizure  and 
charges,  and  pay  to  the  owner  any  surplus  above  the  taxes, 
interest  and  charges  of  keeping  and  sale. 

1888,  390,  §  17.  R.  L.  13,  §25.  5  Gray,  530.  126  Mass.  101. 


Imprisonment 
for  non-pay- 
ment of  tax. 
1785.  70,  §  2. 
R.  S.8,  §  11. 
G.  S.  12,  §  13. 
P.  S.  12,  §  14. 
1888.  390.  §  18. 
1893,  241. 
1901,  408. 
R.  L.  13.  §  26. 
13  Met.  85. 
9  Gray.  190. 
13  Gray,  93. 


Certificate  of 
cause  of  com- 
mitment. 
1785,  70,  §  11. 
R.  S.  8,  §  13. 
G.  S.  12,  §  14. 
P.  S.  12,  §  15. 

1888,  390, §  19. 

1889,  334,  §  5. 
R.  L.  13,  §  27. 


Discharge  of 

debtor  upon 

poor  debtor 

oath. 

1790,  42, 

§§  1-4. 

R.  S.8,  §§48, 

49. 

1857,  141,  §  24. 

G.  S.  12,  §  15. 

P.  S.  12,  §  16. 

1888.  390.  §  20. 

R.  L.  13,  §  28. 


Liability  of 
collector  if 
debtor  dis- 
charged. 
1790,  42,  §  6. 


COLLECTION    BY    IMPRISONMENT. 

Section  27.  If  a  person  refuses  or  neglects  to  pay  his 
tax  for  fourteen  days  after  demand  and  the  collector  can- 
not find  sufficient  goods  upon  which  it  may  be  levied,  he 
may  take  the  body  of  such  person  and  commit  him  to  jail 
until  he  pays  the  tax  and  charges  of  commitment  and  im- 
prisonment, or  is  discharged  according  to  law;  but  a  per- 
son committed  for  the  non-pa^inent  of  a  poll  tax  shall  not 
be  detained  in  jail  more  than  seven  days. 

3  Allen,  5.  188  Mass.  506. 

Section"  28.  A  collector  who  commits  a  person  to  jail 
shall  give  to  the  keeper  thereof  a  certificate  signed  by  him, 
stating  that  he  has  committed  the  person  for  non-payment 
of  his  tax  for  fourteen  days  after  demand  therefor,  and  for 
want  of  goods  and  chattels  whereof  to  make  distress,  and 
setting  forth  the  amount  said  person  shall  pay  for  said  tax, 
interest,  charges  and  fees. 

Section  29.  Upon  the  request  of  a  person  who  has 
been  committed  to  jail  for  the  non-payment  of  a  tax,  the 
jailer  shall  forthwith  inform  some  magistrate  having  au- 
thority to  examine  poor  debtors  that  the  debtor  desires 
to  take  the  oath  for  the  relief  of  poor  debtors.  The  magis- 
trate shall  thereupon  appoint  a  time  and  place  for  the  ex- 
amination of  the  debtor,  and  shall  direct  the  jailer  to  cause 
the  debtor  to  be  present  at  the  examination.  The  notice 
which  is  required  by  section  thirty-three  of  chapter  one 
hundred  and  sixty-eight  of  the  Revised  Laws,  to  be  given 
to  the  creditor  may  be  given  to  any  one  of  the  assessors  or 
to  the  collector  of  the  city  or  town  in  which  the  tax  was 
assessed,  any  of  whom  may  appear  at  the  examination  and 
do  all  things  which  a  creditor  might  do  upon  an  arrest  or 
execution.  If  a  debtor  is  unable  to  pay  such  tax,  he  may 
be  discharged  in  the  same  manner  as  if  he  were  committed 
upon  an  execution. 

Section  30.  The  collector  shall  be  liable  for  the  tax 
and  the  charges  of  imprisonment  of  a  person  who  is  dis- 
charged,  unless  he   arrested   and  committed  such   person 


157 

within  one  year  after  the  tax  was  committed  to  him  for  g;|;f^^§^g 

collection,  or  unless  he  shall  be  exonerated  therefrom  by  P;'s:i2,§i7. 

the  city  or  town  to  which  the  tax  is  due.  3  Met.  152.  R-  l.  13,  §  29. 

Section  31.     A  collector  who  is  resisted  or  impeded  in  Collector  may 

„,_.  n  1  '         nr>  •  •.      require  aid. 

the  exercise  of  the  duties  of  his  office  may  require  any  suit-  1782,  ei.  §  2. 
able  person  to  aid  him;  and  any  such  person  refusing  or  r. s.'s,  §6. ' 
nefflectine;  to  render  such  aid  shall  forfeit  not  more  than  p."  s.'  12,'  §  is.' 

J.        J   ^^  T,   T    ,0  «  on  1888, 390,  §  22. 

ten  dollars.  R-  l-  i3,  §  30. 

Section  32.     If  a  tax  assessed  upon  a  person  remains  Distraint  of 

unpaid  for  fourteen  days  after  demand  therefor,  the  col-  Wa?rant"of 

lector  may  issue  his  warrant  to  the  sheriffs  of  the  several  IjsITto',  §  5. 

counties,  or  their  deputies,  or  to  any  constable  or  deputy  Jl^l',  34!  ^^' 

collector  of  taxes  of  the  city  or  town  for  which  he  is  the  g-  |-  }|'  |  J^. 

collector,  directing  them  and  each  of  them  to  distrain  the  isfs.  390,  §  23. 

~  -,  loo9,  664:,  §  0. 

property  or  take  the  body  of  the  person  assessed  and  to  R.  l.  13,  §  3i. 
proceed  as  required  of  collectors  in  like  cases.     The  war-  191  Mass.  563. 
rant  shall  run  throughout  the  commonwealth,  and  any  offi- 
cer to  whom  it  is  directed  may  serve  it  and  apprehend  the 
person  in  any  county. 

COLLECTION    BY    SUIT. 

Section  33.    If  a  tax  remains  unpaid  for  three  months  Action  for  tax. 
after  it  has  been  committed  to  the  collector,  he  may  main-  r. s.'8,§  15. 
tain  an  action  in  his  own  name  against  the  person  assessed  g.  s.'  12,  §  19. 
therefor  in  the  same  manner  as  for  his  own  debt.  issl',  390!  §24, 

1889.  334,  §  7.  R.  L.  13,  §  32.  179  Mass.  486.         189  U.  S.  255. 

Section  34.     If  a  person  assessed  for  a  tax  dies  or  be-  Liability  of 

comes  insolvent  before  the  payment  thereof,  or  if  a  tax  is  isls^Sid^  ^' 

assessed  upon  the  estate  of  a  deceased  person,  the  execu-  a¥.'r2,^§20. 

tor,  administrator  or  assignee  shall,  if  a  demand  has  been  f888\39b!r25. 

made  upon  him  therefor,  forthwith  upon  receipt  of  any  9^7mJJ;|2i^' 

money  applicable  to  the  payment  of  the  tax,  pay  the  same,  J^J^^^- 11^- 

and  in  default  shall  be  personally  liable  therefor  as  for  his  i94  Mass.-77. 
own  tax. 

Section  35.     If  personal  property  in  the  possession  of  ^cumXting°^ 

a  corporation  or  an  individual  as  an  accumulating  fund  ^^f  ^gg  g  ^ 

for  the  future  benefit  of  heirs  or  other  persons  has  been  fggl-^gl'o^  He 

duly  assessed  to  them  in  accordance  with  clause  six  of  sec-  R.  l!  13,  §  34. ' 

tion  twenty-three  of  Part  I.,  and  they  neglect,  for  one  year  124  mis.  193! 
after  the  tax  has  been  committed  to  the  collector,  to  pay 
the  same,  the  collector  may  maintain  an  action  in  his  own 
name  against  the  trustee  therefor  as  for  his  own  debt ;  and 
the  amount  paid  by  said  trustee  may  be  allowed  in  his 
account. 


158 


COLLECTION  BY  SALE  OE  TAKING  OF  LAND. 

^"be^l'^iienon  Section  36.     Taxes  assessed  -upon  land,  including  those 

iTso'm  §9  assessed  under  the  provisions  of  sections  sixteen,   seven- 

is'sl' 239^^1  ^^®^  ^^^  eighteen  of  Part  I.,   shall  with   all  incidental 

1859!  lis;     ■  charges  and  fees  be  a  lien  thereon  from  the  first  day  of 

G.  s'.  12,  §§  22,  May  in  the  year  of  assessment.     Such  lien  shall  terminate 

1878, 266,  §  14.  at  the  expiration  of  two  years  from  the  first  day  of  October 

R^s.'f2,^§§24,  in  said  year,  if  the  estate  has  in  the  mean  time  been  alien- 

1888, 390,  ^ted ;  otherwise  it  shall  continue  until  an  alienation  thereof. 

i889^'3^34  §  9  There  shall  be  no  lien  for  taxes  re-assessed  if  the  property 

J^v.^',  ^^v}  ^^-  is  alienated  before  the  re-assessment.     Said  taxes,  if  i5n- 

7  Pick.  15. 

2  Gray,  185.  paid  f or  fourtccn  days  after  demand  therefor,  may,  with 
106  Mass.  29.  Said  charges  and  fees,  be  levied  by  sale  of  the  real  estate, 
119  Mass!  295!    if  the  lien  thereon  has  not  terminated  prior  to  the  giving 

124  M^s!  343!     of  the  notice  of  sale.  129  Mass.  379.  137  Mass.  407,  445. 

142  Mass.  577.       154  Mass.  209.       178  Mass.  465.      185  Mass.  398.       189  Mass.  182 

Demand  for  Section  37.     If  SL  mort^affee  of  land  situated  in  the 

payment  by  ,  ~    ^ 

mortgagee.  place  of  his  residence,  before  the  first  day  of  September 
1848, 166,  §  1.  of  the  year  in  which  the  tax  is  assessed,  gives  written 
p.'s.'i2'§  26.'  notice  to  the  collector  that  he  holds  a  mortgage  on  land, 
1889;  334,' §  lo!  with  SL  description  of  the  land,  the  demand  for  payment 
R.  L.  13,  §  36.  gi-^all  be  made  on  the  mortgagee  instead  of  the  mortgagor, 
^fe/pfice.  Section  38.    If  a  mortgagee  or  an  owner  of  land  causes 

1794.68  I  i^     a  notice,  designating  a  place  in  the  city  or  town  in  which 
21.      '        '    such  land  lies  at  which  all  papers  relative  to  taxes  on  such 
G.  s.'i2,  §§  25,  land  which  are  to  be  served  on  him  may  be  left,  to  be  re- 
p.'s.  12,  §§  27,  corded  in  January  of  any  year  in  the  office  of  the  clerk 
ii88.390,         of  such  city  or  town  and,  during  said  month,  to  be  deliv- 
i889^'334,  §  11.  ored  to  the  collector  thereof,  a  notice,  summons,  demand 
R^L  i3^§37'    ^^^  payment  or  other  paper  relating  to  the  taxes  on  such 
178  Mass.  465.    land  which  are  to  be  served  by  the  collector  shall  be  served 
at  such  place.     The  collector  shall  not  advertise  the  sale 
of  such  land  for  two  months  after  the  time  of  a  demand 
so  made. 
?nand°^'^^^         Section  39.     The  collector  shall  give  notice  of  the  time 
R^s'8^'§\24    ^^^  place  of  sale  of  land  for  payment  of  taxes  by  publica- 
?§-.o  ,L  .  o'   tion  thereof.    Such  notice  so  published  shall  contain  a  sub- 

lo4»,  166,  §3.  •n  i  ••ci  t«i 

G.  s.  12,  §§  28,  stantially  accurate  description  oi  the  several  rights,  lots, 
p.s.  12,  §§  30,  or  divisions  of  the  land  to  be  sold,  the  amount  of  the  tax 
1888, 390,         assessed  on  each,  and  the  names  of  all  owners  known  to  the 

R.  L.'l3,'§  38.     collector.     13  Gray,  77.         124  Mass.  66.         126  Mass.  280.         136  Mass.  33. 


159 

Sectioit  40.     If  land  to  be  sold  is  situated  in  a  place  Designation  of 

the  name  of  which  shall  have  been  changed  by  law  within  h^  been"^^™^ 

three  years  preceding  the  sale,  the  collector  shall  designate  iTSsf  7o',  §  7. 

such  place  in  his  notices  of  the  sale  by  its  former  and  ex-  ai.i2f§^3i. 
isting  name.       p.  s.  12,  §  33.        1888, 390,  §  38.    ^    r.  l.  13,  §  39. 

SECTioisr  41.     The  collector  shall,  three  weeks  before  Notice  of  sale, 

the  sale,  post  a  notice  similar  to  that  required  by  section  1785^76,  §  7.  • 

thirty-nine  in  some  convenient  and  public  place  in  his  pre-  isJ.lel.^^. 

Cinct.  G.  S.  12,  §  30.  p.  S.  12,  §  32.  1888,  390,  §  37. 

1889,  334,  §  12.  1901,  108.  R.  L.  13,  §  40.  126  Mass.  280, 

Section  42.     If  the  taxes  are  not  paid,  the  collector  Saiebyauc-. 
shall,  at  the  time  and  place  appointed  for  the  sale,  sell  by  {Ion  of  pro-°^'' 
public  auction  the  smallest  undivided  part  of  the  land  by^purchi^n'* 
which  will  satisfy  the   taxes   and   necessary   intervening  r.^s^;8[%^28, 
charges,  or  the  whole,  if  no  person  offers  to  take  an  un-  ^-^  ^^  » ^3 
divided  part ;  and  may  at  such  sale  require  of  the  purchaser  P^g|- 1^§  35.^ 
an  immediate  deposit  of  such  sum  as  he  shall  consider  1900!  376! 
necessary  to  insure  good  faith  in  the  payment  of  the  pur-  13  Gray,' 77. 
chase  money,  and  on  failure  of  the  purchaser  to  make  such  124  mSss.  65. 
deposit  forthwith,  the  sale  shall  be  void  and  another  sale  li^M^silS!^" 
may  be  made  as  hereinbefore  provided.  152  Mass.  203. 

154  Mass.  209.  171  Mass.  315.  179  Mass.  74.  192  Mass.  278. 

Section  43.     The  collector  may  adjourn  the  sale  from  Adjournment 
time  to  time  not  exceeding  seven  davs  in  all ;  and  he  shall  r.  s.  8,  §  so. 

•  "^  •  .08  12  5  34 

give  notice  of  every  adjournment  by  a  public  declaration  p.' s.' 12' §  37.' 

thereof  at  the  time  and  place  appointed  for  the  sale.  r.^l;  is!^!  42. ' 
112  Mass.  535. 

Section  44.    The  collector  shall  execute  and  deliver  to  Deed  to 

the  purchaser  a  deed  of  the  land,  which  shall  state  the  cause  ^"ntentg^' 

of  sale,  the  price  for  which  the  land  was  sold,  the  name  of  lygg^jo,  §  7. 

the  person  on  whom  the  demand  for  the  tax  was  made,  the  |l-.|-^d^s^v 

111  •  11  /•     1  1848,  166,  §  5. 

places  where  the  notices  were  posted,  the  name  01  the  news-  g.  s.  12,  §  35. 

paper  in  which  the  advertisement  of  the  sale  was  published,  1888, 390,  §  43. 

and  the  residence  of  the  grantee,  and  shall  contain  a  war-  r.  l!  13,  §  43.' 

ranty  that  the  sale  has  in  all  particulars  been  conducted  1905;  193! 

according  to  law.    The  deed  shall  convey,  subject  to  the  e  Alien,  576. 

right  of  redemption,  all  the  right  and  interest  which  the  }26mSs!278! 

owner  had  in  the  land  when  it  was  taken  for  his  taxes,  and  J27  Mass.  3|. 

the  premises  conveyed  shall  also  be  subject  to  and  have  the  i36  Mass.  32 

benefit  of  all  easements  and  restrictions  lawfully  existing  154  Mass!  209! 

•1    1        J  ^     '        X    .1  /        1.  164  Mass.  335., 

m,  upon  or  over  said  land  or  appurtenant  thereto  when  so  178  Mass.  465. 
taken.  Such  deed  shall  not  be  valid  imless  recorded  within  183  mSs".  333! 
thirtv  davs  after  the  sale.  185  Mass.  398. 


160 


Reimburse- 
ment of  pur- 
chaser on  sur- 
render of  deed 
if  sale  invalid. 
1862,  183,  §  6. 
1878,  266,  §  1. 
P.  S.  12,  §  39. 
1882.  243,  §  3. 
1888,  390, 
§§44,47. 
R.  L.  13,  §  44. 
10  Allen,  49. 
129  Mass.  567. 
131  Mass.  277. 


Owner  of  tax 

title  to  file  in 

registry  of 

deeds,  etc.,  a 

statement  of 

residence,  etc. 

1882,  243,  §§  1, 

2. 

1888, 390, 

§§45,46. 

R.  L.  13,  §  45. 


Collector  to 
purchase  for 
city  or  town  if 
bid  insuffi- 
cient. 

1862,  183,  §§  1, 
6. 


Section  45.  If  it  subsequently  appears  tliat,  by  reason 
of  an  error,  omission  or  informality  in  the  assessment  or 
the  sale,  the  purchaser  has  no  claim  upon  the  property 
sold,  he  may  within  two  years  after  the  date  of  the  deed, 
offer  by  writing  given  to  the  collector,  to  surrender  and 
discharge  his  deed  or  to  assign  and  transfer  to  the  city  or 
town  all  his  right,  title  and  interest  in  the  premises,  as  the 
collector  shall  elect  Such  offer  shall  contain  a  specific 
statement  of  the  reason  why  the  holder  has  no  claim  on 
the  land  sold,  with  the  evidence  upon  which  he  relies,  and 
if  such  evidence  consists  of  any  public  record  or  of  facts 
shown  therein,  such  offer  shall  contain  a  specific  reference 
thereto.  Upon  such  surrender  and  discharge  or  assign- 
ment and  transfer,  the  city  or  town  shall  pay  to  the 
purchaser  the  amount  which  he  paid  with  interest  at  the 
rate  of  ten  per  cent  per  annum  which  payment  shall  be 
in  full  for  all  damages  for  any  defects  in  the  proceedings 
or  under  the  warranty  in  such  deed,  l^o  city  or  town 
and  no  treasurer  or  collector  thereof  shall  pay  or  be 
liable  for  any  amount  due  under  the  provisions  of  this 
section  unless  such  statement  is  filed. 

Section  46.  Whoever  has  a  title  to  land  under  a  sale 
for  nonpayment  of  taxes  or  other  assessment  and  is  a 
resident  of  the  city  or  town  in  which  such  land  lies,  shall 
file  with  the  treasurer  of  such  city  or  town  and  in  the 
registry  of  deeds,  a  statement  of  his  residence  and  place 
of  business,  with  the  street  and  number,  if  any.  Such 
person,  who  is  not  a  resident  of  such  city  or  town  or 
who  removes  therefrom,  shall  appoint  an  agent  residing 
therein,  or  in  the  place  where  the  tax  deed  is  recorded, 
authorized  to  release  such  land.  He  shall  also  file  the 
statement  above  required  in  which  he  shall  also  state  the 
name  of  such  agent  and  his  residence  and  place  of  busi- 
ness, with  the  street  and  number,  if  any.  Whenever  a 
person  holding  a  tax  title  changes  his  residence  or  place  of 
business  or  agent,  he  shall  file  a  new  certificate.  Tender 
of  payment  to,  and  service  of  process  upon,  such  agent 
shall  be  a  sufficient  tender  to,  or  service  upon,  the  holder 
of  such  tax  title. 

Section  47.  If  at  the  time  and  place  of  sale  no  person 
bids  for  the  land  so  offered  for  sale  an  amount  equal  to  the 
tax  and  charges,  and  if  the  sale  has  been  adjourned  one 
or  more  times,   the  collector  shall  then   and  there  make 


161 

public  declaration  of  the  fact ;  and,  if  no  bid  equal  to  the  p.  s.  12,  §  40. 
tax  and  charges  is  then  made,  he  shall  give  public  notice  r.^l!i3?M6^ 
that  he  purchases  for  the  city  or  town  by  which  the  tax  112  Mass.  535. 
is  assessed,  the  said  land  as  offered  for  sale  at  a  price 
not  exceeding  the  amount  of  the  tax  and  the  charges  and- 
expenses   of  the   levy    and   sale,   whch   amount   shall   be 
allowed  to  him  in  his  settlement  with  such  city  or  town. 

Section  48.    If  the  purchaser  of  such  land  fails  to  Saietobevoid 
pay  the  collector  within  twenty  days  after  the  sale  the  money^irnot 
amount  bid  by  him  the  sale  shall  be  void,  and  the  city  or  fwenty*diys. 
town  shall  be  deemed  to  be  the  purchaser  of  the  land,  p^s^'/|^§|f" 
under  the  provisions  of  the  preceding  section.  i^^s-  390,  §  49. 

1889,  334,  §  13.  R.  L.  13,  §  47.  126  Mass.  278.  140  Mass.  578. 

Section  49.   If  the  city  or  town  becomes  the  purchaser.  Deed  to  city  or 

the  deed  to  it,  in  addition  to  the  "statements  required  by  tents." 

section  forty-four,  shall  set  forth  the  fact  that  no  bid  was  i\  s^.'/l,^'  ^  ^" 

made  at  the  sale  or  that  the  purchaser  failed  to  pay  the  flss^'s^o 

amount  bid,  as  the  case  may  be,  and  shall  confer  upon  flgg^'s^s^"  §  14 

such  citv  or  town  the  rights  and  duties  of  an  individual  ^-h  i3,  §  48. 

T        "  ^  6  Allen,  576. 

purchaser.  131  Mji«s  57. 

Section  50.   If  unimproved  and  unoccupied  land  does  saieofunim- 
not  exceed  four  thousand  square  feet  in  area,  or  is  laid  fa^'nl®^' ®*''' 
out  in  lots  or  parcels  no  one  of  which  exceeds  such  area,  §§^/'2.^^' 
and  the  taxes  unpaid  for  any  one  year  do  not  exceed  fifty  ^-  ^- 1^-  §  4®- 
cents  on  such  land,  or  on  any  such  lot  or  parcel  thereof, 
the  collector  may  give  notice  of  the  sale  by  publication 
of  an  advertisement   stating  the  name  of  the  owner  of 
record  of  each  lot  on  the  first  day  of  May  of  the  year  of 
assessment,  the  tax  due  thereon  and  the  number  of  such 
lot  on  a  street,  way  or  plan,  without  further  description 
thereof. 

Section  51.    The  collector  may  convey  in  one  deed  to  Deeds  of  such  . 
the  same  purchaser  or  convey  to  the  city  or  town,  any  1894, 537,  §13. 
number  of  the  lots  so  advertised  and  sold,  and  said  deed  ^"  ^"  ^^'  ^  ^' 
shall  state  the  name  of  said  owner  of  record  of  each  lot 
conveyed  therein,  on  the  first  day  of  May  of  said  year, 
the  amount  of  the  taxes  and  cost  due  for  each  lot,  and  the 
number  on  the  street,  way  or  plan  of  each  lot  respectively 
and  need  contain  no  further  description  of  the  lot,  owner 
or  amount  due. 

Section   52.    The  cost  of  advertisement  shall  be   ap-  Apportion- 
portioned    equally    among    all   the   lots    specified    in   the  Sdve*rtise°^*  ° 
advertisement;  the  cost  of  the  sale  shall  be  apportioned  Sfddeedf 


162 


1894,  537,  §  4. 
R.  L.  13,  §  51. 


Custody  of  tax 

title  deeds  to 

cities  and 

towns. 

Management 

of  tax  titles, 

how  regulated 

1862,  183, 

§§2,4. 

P.  S.  12,  §  43. 

1888,  390,  §  51, 

1889,  334,  §  14, 
R.  L.  13,  §  52. 


Taking  of  land 
by  collector 
for  taxes. 
Notice. 

1878,  266,  §  5. 
1881,  304,  §  4. 
P.  S.  12,  §  44. 
1888,  390,  §  52. 
R.  L.  13,  §  53. 


Instrument  of 
taking,  form, 
contents,  effect. 
1878,  266,  §  5. 
P.  S.  12,  §  46. 
1888,  390,  §  54. 
1892,  109,  §  2. 
R.  L.  13,  §  54. 
191  Mass.  576. 


Fees  for 
taking. 

1878,  266,  §  13. 
P.  S.  12.  §  47. 
1888,  390,  §  55. 

Sale  or  taking 
to  be  of  entire 
estate.     In 
whose  name 
to  be  made. 
1881,  304,  §  4. 
P.  S.  12,  §  48. 
1888,  390,  §  56. 
R.  L.  13,  §  56. 
175  Mass.  355. 
180  Mass.  65. 
183  Mass.  303. 

Affidavit  of 
collector,  etc., 
to  be  evi- 
dence. 


equally  among  all  the  lots  sold,  and  the  cost  of  the  deed 
shall  be  apportioned  equally  among  all  the  lots  conveyed 
thereby. 

Section  53.  Deeds  to  a  city  shall  be  placed  in  the 
'custody  of  its  collector,  and  to  a  town  in  the  custody  of 
its  treasurer,  and  all  applications  for  the  redemption  of 
the  land  conveyed  thereby  shall  be  made  to  such  collector 
or  treasurer  respectively.  Cities  and  towns  may  make 
regulations  for  the  custody,  management  and  sale  of  such 
land  and  for  the  assignment  of  tax  titles,  not  inconsistent 
with  law  or  with  the  right  of  redemption. 

Section  54.  If  a  tax  on  land  is  not  paid  within  four- 
teen days  after  demand  therefor  and  remains  unpaid  at 
the  date  of  taking  the  collector  may  take  such  land  for 
the  city  or  town,  first  giving  three  weeks'  notice  of  his 
intention  to  exercise  such  power  of  taking;  which  notice 
may  be  served  in  the  manner  required  by  law  for  the  ser- 
vice of  subpoenas  upon  witnesses  in  civil  cases  or  may  be 
published,  and  shall  conform  to  the  requirements  of  section 
thirty-nine.  He  may  also  post  a  similar  notice  under  the 
provisions  of  section  forty-one. 

Section  55.  The  instrument  of  taking  shall  be  under 
the  hand  and  seal  of  the  collector  and  shall  contain  a 
statement  of  the  cause  of  taking,  a  substantially  accurate 
description  of  each  parcel  of  land  taken,  the  name  of  the 
person  to  w^hom  the  same  was  assessed,  the  amount  of 
the  tax  thereon  and  the  incidental  expenses  and  costs  to 
the  date  of  taking,  and  shall  be  recorded  in  the  registry 
of  deeds;  and  the  title  to  the  land  so  taken  shall  there- 
upon vest  in  the  city  or  town  subject  to  the  right  of  re- 
demption. 

Section  56.  If  land  has  been  so  taken  there  shall  be 
allowed  to  the  collector  and  added  to  the  tax  the  charges 
and  fees  fixed  by  section  thirteen.  r  l.  13  §  55 

Section  57.  The  assessment,  sale  or  taking  may  be 
made  in  the  name  of  one  or  more  of  the  record  owners 
at  the  date  of  assessment,  and  if  so  made,  shall,  subject 
to  the  provisions  of  section  forty-two,  be  deemed  to  be  in 
the  name  of  the  owner  thereof.  Every  such  sale  or  taking 
shall  be  of  the  whole  estate  and  not  of  the  undivided  in- 
terest of  any  joint  owner  thereof. 

Section  58.  The  affidavit  of  the  collector,  deputy  col- 
lector or  disinterested  person  reciting  the  proceedings  re- 


163 

quired  by  law  in  the  sale  of  land  for  taxes,  with  copies  of  R.^s;8f§§  22, 

the  advertisement  and  notices  annexed  thereto,  recorded  ^-^  ^^  ..^^ 

within  three   months   after   such   sale   in  the   registry   of  32^^  ^ ' 

deeds,  shall  be  competent  evidence  of  demand,  notice  and  p.  s.'i2,  §§34. 
service.              isss,  390,  §§  39, 53.                      1892, 109,  §  1. 

R.  L.  13,  §  57.  152  Mass   203. 

Section  59.    The  owner  of  land  taken  or  sold  for  pay-  Redemption  of 

.  ^  ..  land  taken  or 

ment  of  taxes,  including  those  assessed  under  the  provisions  sold  for  taxes, 

of  sections  sixteen,  seventeen  and  eighteen  of  Part  I.,  or  r.  s.'s,  §32.* 

his  heirs  or  assigns,  may,  within  two  years  after  the  taking  §§  i;2. ' 

or  sale,  redeem  the  same  by  paying  or  tendering  to  the  f878',266!^r9. 

collector,  if  the  estate  has  been  taken  or  purchased  by  the  \fjg  73  94 

city  or  town,  the  amount  of  the  tax,  all  intervening  taxes,  p^^g^-j^  |^' 

charges  and  fees,  and  interest  on  the  whole  at  the  rate  of  k^^l- ??o,  §  57. 

.     ,  ^  ,  .  -.       .  K.  L.  13,  §  00. 

eight  per  cent  per  annum ;  or  by  paying  or  tendering  to  1905, 325,  §  1. 
the  purchaser,  or  his  legal  representatives  or  assigns,  the  126  Mass.  278, 
original  sum  and  intervening  taxes  paid  by  him  and  in-  i27"Mass.  604. 
terest  on  the  whole  at  the  rate  of  eight  per  cent  per  annum.  \Iq  mSs!  26?; 
In  each  case  he  shall  also  pay  for  examination  of  the  title  }^|  j^^^;  ^^f 
and  for  a  deed  of  release  not  more  than  three  dollars  in  }74mSs'303" 
the  affffresrate;  and  in  addition  thereto  the  actual  cost  of  JZJ  Mass.  431. 
recording  the  tax  deed  or  evidence  01  taking,  and  snail  be  179  Mass.  41, 
credited  with  any  rents  and  profits  received  by  the  pur-  issMass.  119, 
chaser.  ise'Mass.  440. 

He  may  redeem  land  so  taken  or  sold  as  above  provided  ^^^  ^^^^'  ^^^" 
at  any  time  within  two  years  after  he  has  actual  notice 
of  the  taking  or  sale :  — 

First,  If  the  land  has  been  taxed  as  belonging  to  per- 
sons unknowTi,  and  no  person  has  been  named  in  the  tax 
list  as  owner  or  occupant. 

Second,  If  the  person  named  in  said  list  is  merely  a 
tenant  or  occupant  of  the  premises,  and  not  the  owner 
thereof. 

Third,  If  there  is  in  the  tax  lists,  notices  or  deeds  any 
substantial  and  misleading  error  in  the  name  of  the  person 
taxed. 

Fourth,  If  the  person  offering  to  redeem  is  a  mort- 
gagee of  record  and  the  tax  was  not  assessed  to  him. 

Sectiotst  60.    Whoever  knowingly  collects  or  attempts  Penalty  for 
to  collect  for  the  redemption  of  land  sold  for  payment  coifiJt^in?aw- 
of  taxes  a  sum  of  money  greater  than  that  authorized  by  redtmpdon^?f 
the  preceding  section  shall  be  punished  by  a  fine  of  not  fggi%g^ 
more  than  one  hundred  dollars.  R-  l!  13,  §  59. 


164 


Redemption  if 
purchaser  can- 
not be  found. 
1848,  166, 
§§6,8. 
G.  S.  12,  §  37. 
P.  S.  12,  §  50 
1888,  390,  §  58. 
R.  L.  13,  §  60. 


Disposition  of 
money  by 
treasurer. 
Release  of  title 
under  collect- 
or's deed. 
1848,  166,  §  7. 
G.  S.  12,  §  38. 
P.  S.  12,  §  51. 
1888,  390,  §  59. 
R.  L.  13,  §  61. 
1902,  443. 
1905,  325,  §  2. 
186  Mass.  440. 


Mortgagee 
may  pay  taxes, 
when. 

1856,  239,  §  2. 
G.  S.  12,  §  39. 
1878, 266, §  14. 
P.  S.  12,  §  52. 
1888,  390,  §  60. 
R.  L.  13,  §  62. 
129  Mass.  291. 
131  Mass.  278. 
170  Mass.  551. 


—  shall  pay 
them  on  taking 
possession ; 
entitled  to 
deed  on  tender. 
1856,  239,  §  3. 
G.  S.  12,  §  40. 
1878, 266, §  14. 
1879,  73,  94. 
P.  S.  12,  §  53. 
1888,  390. §  61. 
R.  L.  13,  §  63. 
5  Allen,  65. 

129  Mass.  291. 

130  Mass.  126. 

131  Mass.  278. 
137  Mass.  444. 
177  Mass.  431. 
179  Mass.  41. 


Section  61.  Any  person  having  an  interest  in  any  such 
land  may  redeem  it  as  provided  in  section  fifty-nine  by 
paying  to  the  collector  of  the  place  in  which  the  land  is 
situated  the  amount  which  he  would  be  required  to  pay 
to  the  purchaser,  with  one  dollar  additional. 

1902,  443.  178  Mass.  460.  179  Mass.  112.  186  Mass.  440. 

Section  62.  Said  collector  shall  receive  any  money  so 
paid  and  give  to  the  person  paying  it  a  certificate  specify- 
ing the  amount  paid,  the  name  of  the  person  to  whom  and 
the  real  estate  on  which  the  tax  was  originally  assessed,  and 
the  registry  of  deeds  and  the  book  and  page  of  the  records 
therein  where  the  collector's  deed  is  recorded;  and  the 
recording  of  the  certificate  in  said  registry  shall  extinguish 
all  right  and  title  acquired  under  the  collector's  deed.  The 
collector  shall  on  demand  pay  over  all  money  so  paid,  to 
the  person  entitled  thereto  as  determined  by  him,  except 
that  he  shall  retain  one  dollar  to  be  accounted  for  for  the 
use  of  the  city  or  town,  and  if  the  amount  so  paid  is  less 
than  the  purchaser  was  entitled  to,  the  balance  with  in- 
terest at  eight  per  cent  per  annum  may  after  demand  there- 
for be  recovered  by  said  purchaser  against  the  person 
paying  such  amount,  in  an  action  of  contract,  if  such  action 
is  commenced  within  three  months  after  such  payment  to 
the  collector. 

Section  63.  If  proceedings  have  been  commenced  for 
the  taking  or  sale  of  land  for  a  tax  assessed  thereon,  or 
if  the  owner  of  land  has  neglected,  for  three  months  after 
demand,  to  pay  such  tax,  and  the  collector  has  made  de- 
mand therefor  upon  a  holder  of  a  mortgage  thereon,  such 
holder  may  in  like  manner  pay  such  tax,  charges  and  ex- 
penses and  the  amount  so  paid  may  be  added  to  the 
mortgage  debt. 

Section  64.  If  the  holder  of  a  mortgage  takes  pos- 
session of  land  thereunder,  all  taxes  due  and  constituting 
a  lien  thereon,  and  the  expenses  of  any  taking  or  sale 
which  has  been  commenced  or  has  taken  place,  may  be 
recovered  of  him  in  an  action  of  contract  by  the  collector, 
or  by  the  purchaser,  as  the  case  may  be;  and  upon  pay- 
ment or  tender  by  the  mortgagee  to  the  collector  or  to  the 
purchaser  of  the  amounts  so  due  within  the  time  provided 
by  section  fifty-nine  for  owners  of  land  to  make  payment, 
the  city  or  town  or  the  purchaser  shall  convey  to  him  all 
the  interest  acquired  by  the  taking  or  sale. 


165 

Section    65.    Any  part  of  a  tax  assessed  -upon  land  J^Je^pfyabie 
which  is  assessed  to  a  mortgagor  and  mortgagee  separately  ^^r?^^Tobe 
and  remains  unpaid  on  the  first  day  of  January  next  fol-  added  to  or 
lowing  such   assessment,   may  be   paid  by   either   party,  mortgage  debt. 
If  a  mortgao^ee  pays  a  tax,  interest  or  costs  thereon  which  p.  s.'i2,  §  55/ 
by  law  or  by  the  terms  of  the  mortgage  was  payable  by  the  r.  l!  13,  §  64 
mortgagor,  the  amount  so  paid  shall  be  added  to  the  mort-  ^^^  ^^^-  ^'^^■ 
gage  debt.    If  it  is  by  law  or  by  the  terms  of  the  mortgage 
payable  by  the  mortgagee,  and  is  paid  by  the  mortgagor, 
the  amount  so  paid  shall  be  deducted  from  the  mortgage 
debt  unless  the  parties  have,  in  writing,  otherwise  agreed. 

Section  6G.    If  a  person  other  than  the  owner  of  the  Payment  of 

/••ifn  1  1  111        taxes  by  per- 

f ee,  riohtf ully  pays  the  taxes  assessed  upon  land  to  the  son  not  the 

.  owner  of  the 

collector  or  treasurer,  before  a  taking  or  sale,  the  treas-  fee^ 
urer  or  collector  shall  give  him  a  certificate  of  such  pay-  §§'1-3.    ' 
ment  stating  the  name  of  the  person  to  whom  the  land  is  p.|;/2%V54, 
taxed,  of  the  person  paying  the  tax,  and  a  substantially  1888,390, 
accurate  description  of  the  land.     Such  certificate  being  r  if'fl'fes 
recorded  in  the  re'gistry  of  deeds  within  thirty'  days  from 
its  date  shall  be  notice  to  all  persons  of  such  payment 
and  of  the  lien  therefor.    A  person  whose  tax  is  paid  by  Effect  on 
another  shall  upon  repaying  the  same  have  the  same  right  m^liLs^ess- 
to  recover  it  from  the  city  or  town,  if  illegally  assessed,  ™^"*- 
which  he  would  have  had  if  the  tax  had  been  paid  by  him 
under  protest  in  writing. 

Section  67.    If  land  is  taken  or  purchased  by  a  city  Assessmentof 
or  town,  taxes  shall  be  assessed  thereon  as  though  the  same  a  city  or  town, 
were  not  so  taken  or  purchased ;  and  shall  be  deducted  i878!  266,'  §  16. 
from  the  proceeds  of  the  final  sale.  r.  l.  13,  §  66.  fsss,  390!  §64. 

Section  68.    If  no  person  redeems  land  taken  or  pur-  Saieofunre- 
chased  by  a  city  or  town  within  the  time  prescribed  by  taken\y  d'ty 
law,  its  collector  for  the  time  being,  without  any  vote  or  ise? jls's,  §  7. 
other  special  authority  shall,  within  two  years  after  the  r  s^.'i^2^^§  y.^* 
time  for  redemption  has  expired,  sell  the  same  by  public  }|i6;32j;§i. 
auction,  first  giving  the  notice  required  by  the  provisions  r^l' i3^'§^67^' 
of  section  forty-one  for  sales  for  taxes;  and  if,  from  any 
cause,  such  sale  shall  not  be  made  within  two  years,  it  shall 
be  made  by  the  collector  when  he  deems  best  or  at  once 
upon  the  service  upon  him  of  a  written  demand  of  any 
person  interested  therein.    The  collector  shall  state  in  his 
notice  of  sale  the  smallest  amount  for  which  the  sale  will 
be  made  and  shall,  for  the  city  or  town,  execute  and  de- 
liver to  the  highest  bidder  therefor  a  quitclaim  deed.    He 


166 

shall  deduct  from  the  proceeds  of  said  sale  the  expense 
thereof,  the  amount  named  in  the  collector's  deed  or  instru- 
ment of  taking  as  due  when  the  same  was  executed,  all 
interest,  charges  and  subsequent  taxes  and  assessments 
thereon.  The  balance  shall  be  deposited  with  the  city  or 
town  treasurer  to  be  paid  to  the  person  entitled  to  the 
land,  if  demanded  within  five  years;  otherwise  it  shall 
inure  to  said  city  or  town. 
J'i^olufficflnt  Section  69.  If  no  person  bids  at  such  sale  said  amount 
^iia^^n^lco    or  more,  or  if  the  person  to  whom  the  land  is  sold  does 

looo,  32U,  §  J.  •    1   •  1  1  n  1  I'll 

1888  390,         not  withm  ten  days  pay  to  the  collector  the  sum  bid  by 
R.  L.'i3,§  68.    him,   the  collector  shall  make   an  affidavit  of  the  facts, 
which  shall  be  recorded  in  the  registry  of  deeds  within 
thirty  days  of  the  date  at  which  the  land  was  offered  for 
sale,  after  which  said  affidavit  shall  be  in  the  custody  of 
the  city  or  town  treasurer,  and  the  same,  or  a  copy  thereof, 
certified  by  the  register  of  deeds,  shall  be  prima  facie  evi- 
dence of  the  facts  therein  stated. 
StTseJsion       Section -TO.     The  collector  shall,  within  thirty  days 
\lndheM^h^^^  after  the   recording  of  said  affidavit,   take  possession  of 
i886^3'>oT'3    ^^^^  "^^-^^  ^^  behalf  of  the  city  or  town,  which  may  make 
1888;  39o' §  68.  regulations  for  the  custody,  management  and  sale  thereof, 
and  taxes  shall  be  assessed  thereon  in  the  name  of  such 
city  or  town,  until  it  shall  be  sold;  and  such  subsequent 
sale  and  the  money  received  therefrom  shall  be  held  as 
provided  in  section  sixty-eight. 

PROCEEDINGS  IF  TAX  TITLE  IS  HELD  INVALID. 

foUect^^ho"^       Section  71.    If  a  collector  has  reasonable  cause  to  be- 
deems  tax  title  Heve  that  the  title  to  land  which  has  been  sold  for  the 

invalid.  1.1 

1878,  266  §  2.    non-paymeut  of  taxes  or  of  assessments,  a  lien  for  which 
1888, 390,  §  69.  IS  enforceable  by  a  sale  of  land,  is  invalid  by  reason  of  an 

1889, 334,  §  15.  .      .       -^  .     „  t,        •       xi  x  ^ 

R.  L.  13,  §  70.  error,  omission  or  miormahty  m  the  assessment  or  sale, 
he  may,  within  two  years  after  the  date  of  the  deed  of 
such  land,  give  notice  to  the  record  owner  thereof,  requir- 
ing him,  within  thirty  days  thereafter,  to  release  any  in- 
terests which  he  may  have  in  such  land  under  said  deed, 
and  to  receive  from  the  city  or  town  the  amount  paid 
therefor  with  interest  at  ten  per  cent  or  to  file  with  the 
collector  a  statement  in  writing  that  he  refuses  to  re- 
lease such  interest.  Such  statement,  if  recorded  in  the 
registry  of  deeds,  shall  release  the  city  or  town  from  any 
liability  upon  the  warranty  in  said  deed. 


167  ^ 

Secttoi^  72.    If,  within  thirty  days  after  such  notice,  Notice  to 
such  owner  does  not  comply  therewith,  the  collector  shall  Se.^'"  °^  ^"^'^ 
cause  a  copy  thereof,  with  an  affidavit  by  himself  or  by  a  R^|.'f2^^§  |o^; 
disinterested  person  of  the  service  thereof  and  of  the  facts  Jf^L'  i3°§^7i^' 
in  the  case,  to  be  recorded  in  the  registry  of  deeds.    A 
note  of  reference  to  the  record  of  said  copy  shall  be  made 
on  the  margin  of  the  record  of  the  collector's  deed  therein 
referred  to ;  and  from  the  time  of  such  record  the  interest 
payable  by  reason  of  a  breach  of  warranty  in  such  deed 
shall  cease,  and  all  right  and  title  which  may  have  been 
acquired  under  such  deed  shall  be  held  to  be  released. 
The  collector  shall  give  notice  of  such  proceedings  to  the 
treasurer  of  the  city  or  town,  who  shall,  upon  reasonable 
demand,   pay   over   out   of  any  funds   in  his  hands  the 
amount  due  in  respect  of  said  deed  to  the  persons  en- 
titled thereto. 

Section  73.    If  the  invalidity  of  a  title  described  in  Re-assessment 
section  seventy-one  was  caused  by  an  error,  omission  or  in-  Di^ciaime??? ' 
formality  in  the  assessment,  the  collector,  after  obtaining  i878,%6?^°^' 
from  the  holder  of  the  deed  a  release  of  his  interest  or  |>§  |'  Jg  §§  ei 
after  causing  a  copy  of  the  notice  to  be  filed  and  recorded  J|gg     ' 
as  provided  in  the  preceding  section,  shall  forthwith  notify  §§  7i,  72.' 
tKe  board  by  which  the  tax  or  assessment  was  laid,  which  R.  l!  13,  §  72.  * 
shall  forthwith  re-assess  it  as  provided  in  section  eighty-six 
of  Part  I.     If  such  invalidity  was  caused  by  an  error, 
omission  or  informality  in  the  proceedings  of  the  collector, 
he  shall,  after  obtaining  such  release  or  after  filing  and 
recording  such  copy,  forthwith  collect  the  unpaid  tax  or 
assessment   in   conformity  to   law.     If  the   collector   has 
reasonable  cause  to  believe  that  a  tax  title,  held  by  a  city 
or  town  under  a  sale  or  taking  for  payment  of  a  tax,  is 
invalid  by  reason  of  any  error,  omission  or  informality  in 
the  assessment,  sale  or  taking,  he  may  disclaim  and  release 
such  title  by  an  instrument  under  his  hand  and  seal,  duly 
recorded  in  the  registry  of  deeds. 

LIEN    OF    CO-TENANTS. 

Section  74.  A  tenant  in  common  or  joint  tenant,  who  Tenant  in  com- 
pays  the  entire  tax  assessed  upon  the  land  held  jointly  or  JSg'iax  to^^'" 
in  common,  shall  have  a  lien  upon  the  interest  of  each  of  haveiienon 

1  •  T  1  '  f      1  interest  of 

nis  co-tenants,  to  secure  the  payment  to  him  of  the  pro-  co-tenant, 
portion  of  such  tax  payable  by  each  of  said  co-tenants  p.  s.' 12,  §63." 
respectively,  with  the  costs  of  enforcing  the  same ;   but  r.  l!  13,  §  73. ' 


168 


Enforcement 
and  dissolution 
of  lien. 
1875.  236, 


|,§2-5. 


S.  12  §§64, 
65. 

1888,  390, 
§§  74,  75. 
R.  L.  13,  §  74. 
148  Mass.  444. 


any  person  whose  tax  has  been  so  paid  by  his  co-tenant 
shall  have  the  same  right  to  recover  it  back  if  illegally 
assessed  as  he  would  have  had  if  the  tax  had  been  paid 
under  a  protest  by  him  in  writing. 

Section  75.  Such  lien  may  be  enforced  in  the  manner 
provided  for  enforcing  liens  on  buildings  and  land;  and 
shall  be  dissolved,  unless  the  person  desiring  to  avail 
himself  thereof  makes -a  certificate  setting  forth  a  descrip- 
tion, sufficiently  accurate  for  identification,  of  the  property 
intended  to  be  covered  by  the  lien,  the  names  of  the  several 
co-tenants  and  the  interest  of  each  therein,  the  amount  of 
the  tax  paid,  and  the  amount  due  from  each  co-tenant, 
which  shall  be  subscribed  and  sworn  to  by  him,  or  by 
some  one  in  his  bt^half,  and  shall  within  thirty  days  after 
the  day  of  payment  of  said  tax  be  recorded  in  the  registry 
of  deeds,  and  unless  a  suit  to  enforce  it  is  commenced 
within  ninety  days  after  the  date  of  recording  said  certifi- 
cate. Such  lien  shall  not  be  valid  against  a  mortgage 
actually  existing  and  duly  recorded  prior  to  the  recording 
of  said  certificate. 


Relief  in 
equity,  i 
1849,  213,  §  2. 
1856,  239,  §  4. 
G.  S.  12,  §  42. 
1878,  266,  §  14. 
P.  S.  12,  §  66. 


By-laws,  etc., 
to  regulate 
power  of  sale 
or  of  taking  by 
collector. 

1878,  266,  §  6. 

1879,  169. 

P.  S.  12,  §  67. 
1888,  390,  §  77. 
R.  L.  13,  §  76. 


Posting  of  tax 
by 


(§3.4. 
34. 
§43. 


list,  etc., 

sheriff. 

1785,70. 

R.  S.  8, 

G.  S.  12, 

P.  S.  12,  §  68. 

1888,  390,  §  78. 

R.  L.  13.  §  77. 

Sheriff's  fees 

for  collecting. 

1785.  70,  §  4. 


MISCELLANEOUS    PROVISIONS. 

Section  76.  The  supreme  judicial  court  and  the  su- 
perior court  shall  have  jurisdiction  in  equity  in  all  cases 
of  taking  or  sale  of  land  for  the  payment  of  taxes  if  relief 
is  sought  within  six  years  after  the  taking  or  sale. 

1888,  390,  §  76.  11  Gray,  410.  143  Mass.  59.  177  Mass.  431. 

1900,177.  98  Mass.  44.  150  Mass.  73.  178  Mass.  460. 

R.  L.  13.  §  75.  99Ma.ss.  209.  168  Ma.ss.  76.  179  Ma.ss.  112. 

1905.  325,  §  3.  112  Mass.  86.  172  Mass.  436.  1R7  Mass.  474. 

10  Met.  101.  126  Mass.  337.  175  xMass.  485.  189  Mass.  366. 

Section  77.  A  city  or  town  may,  by  ordinance  or 
by-law,  respectively,  direct  whether  its  collector  shall 
exercise  the  power  of  sale  or  the  power  of  taking  to  en- 
force the  lien  for  taxes;  and  in  default  of  such  ordinance 
or  by-law  the  collector  may  exercise  either  power  at  his 
discretion;  but  the  passage  of  any  such  ordinance  or  by- 
law shall  not  render  invalid  any  proceedings  then  pending. 

Section  78.  When  the  tax  list  and  warrant  of  the 
assessors  is  committed  to  the  sheriff  or  his  deputy,  he  shall 
forthwith  post,  in  some  public  place  in  the  city  or  town  as- 
sessed, an  attested  copy  of  said  list  and  warrant ;  and  shall 
make  no  distress  for  a  tax  within  thirty  days  thereafter. 

Section  79.  If  a  person  pays  his  tax  within  said 
thirty  days,  the  officer  shall  receive  from  him  for  his  fees 


169 

five  per  cent  on  the  sum  assessed ;  but  if  a  tax  remains  r.  s.  8,  §  35. 

unpaid  after  said  thirty  days,  he  shall  collect  the  same  by  p.'  s.'  12;  §  69." 

distress  or  imprisonment,  or  by  sale  of  land  as  a  collector  r.^l.'i3!^§  78^' 
would  do.    The  officer  may  also  levy  his  fees  for  service 
and  travel  in  the  collection  of  each  person's  tax,  as  in 
other  cases  of  distress  and  commitment,  or  sale  of  land. 

Section  80.    If  a  city  or  town  appoints  its  treasurer  Proceedings'of 

the  collector  of  taxes,  he  may  issue  his  warrants  to  the  cSfeTton^ 

sheriff  of  the  county,  or  his  deputy,  or  to  any  constable  ifsllils. 

of  the  city  or  town,  returnable  in  sixty  days,  requiring  RS.  8,  §§36, 

them  to  collect  any  or  all  taxes  due.    Such  warrants  shall  $874"  28  I ?^ 

be  substantially  in  the  same  form,  and  shall  confer  the  P;o^o'\?^J  J1-« 

"  ,  ,,  looo,  390,  §  80. 

same  powers  as  warrants  by  assessors  to  collectors.  R.  l.  13,  §  79. 

8  Allen,  330.  191  Mass.  503. 

Sectiois^  81.    When  any  foreign  corporation  or  non-res-  Foreign  corpo- 
ident  person  doing  business  in  the  commonwealth  shall  for  non-residents 
sixty  days  neglect,  refuse  or  omit  to  pay  a  tax  lawfully  J^SineY^' 
assessed   and  payable,    any  court  having  jurisdiction  in  i94^m^s."  127. 
equity  may  upon  petition  of  the  collector  of  taxes  of  the 
city  or  town  where  the  tax  is  assessed  restrain  said  corpo- 
ration or  person  from  doing  business  in  the  commonwealth 
until  said  tax,  with  all  incidental  costs  and  charges,  shall 
have  been  paid.    Service  of  process  upon  any  such  petition 
may  be  made  by  an  officer  duly  qualified  to  serve  process, 
by  leaving  a  duly  attested  copy  thereof  at  the  place  where 
the  business  is  carried  on. 

Section  82.    The  board  of  aldermen  or  selectmen  may  Deputy  coi- 

n->  1         •        1  n  •  lectors,  ap- 

empower  any  oiticer  authorized  to  collect  taxes  to  appoint  pointment, 
such  deputies  as  he  deems  expedient.    Such  deputies  shall  i874,'28,  §1. 
give  bond  for  the  faithful  performance  of  their  duties  in  1888,390;  §8*1. 
such   sum   as  the  board  of  aldermen  or   selectmen   may  ^'  ^"  ^^'  ^  ^^' 
prescribe  and  shall  have  the  powers  of  collectors  of  taxes. 

Section  83.    The  treasurer  or  other  disbursing  officer  city,  etc., 
of  any  city  or  to^vn,  may,  and  if  so  requested  by  the  col-  wftlfhofd  ^^^ 
lector,  shall,  withhold  payment  of  any  money  payable  to  ^rso?s  "wing 
any  person  whose  taxes  are  then  due  and  wholly  or  partly  i878!"266,  §  8. 
unpaid  to  an  amount  not  exceeding  the  unpaid  tax  with  fgg|-  ^^^^  JI2 
interest  and  costs.     The  sum  withheld  shall  be  paid  or  ^-  l'  is,  §  si. 
credited  to  the  collector,   who  shall,   if  required,   give  a 
written  receipt  therefor.    The  person  taxed  may  in  such 
case  have  the  same  remedy  as  if  he  had  paid  such  tax 
after  a  le^^  upon  his  goods.    The  collector's  rights  under 
the  provisions  of  this  section,  shall  not  be  affected  by  any 
assignment  or  trustee  process. 


170 


Accounts  of 
collectors  to  be 
exhibited  bi- 
monthly if  re- 
quired. 
1783,  66. 
§§1.2. 
R.  S.8,  §§45. 
46. 

G.  S.  12,  §§  46. 
47. 

P.  S.  12,  §§  73. 
74. 


Credits  to  col- 
lectors for 
abatements, 

1785,  42,  §  6. 
R.  S.  8.  §  43. 
G.  S.  12,  §  48. 
1862,  183,  §  5. 
P.  S.  12,  §  75. 
1888,  390,  §  85. 
R.  L.  13,  §  83. 
9  Met.  503. 
13  Gray,  324. 


Removal  by 
selectmen  of 
disqualified 
collector. 
1783,  10,  §  1. 
1785,  46,  §  15. 
1791,  22,  §  1. 
R.  S.  8,  §  40. 
G.  S.  12,  §  52. 
P.  S.  12,  §  79. 
1888,  390,  §  89. 
R.  L.  13,  §  84. 
7  Gray,  130. 

Tax  list  of  de- 
ceased, etc., 
collector,  how 
completed. 
1785,  46.  §  5; 
70,  §  1. 
R.  S.8,  §39. 
G.  S.  12,  §  53. 
1881,  138,  §  1. 
P.  S.  12,  §§  80, 
81. 

Action  to  re- 
cover back 
taxes  paid  to 
collector,  when 
maintainable. 
1859,  118, 
§§3,4. 
G.  S.  12,  §  56. 
P.  S.  12,  §  84. 
1888,  390,  §  94. 
R.  L.  13,  §  86. 

9  Gray,  38. 
13  Gray,  476. 
1  Allen,  319. 

10  Allen.  48. 
99  Mass.  209. 
102  Mass.  348. 
126  Mass.  98. 


Section  84.  The  mayor  and  aldermen  or  the  select- 
men may  require  the  collector  once  in  two  months  to  ex- 
hibit to  them  a  true  account  of  all  money  received  on  the 
taxes  committed  to  him,  and  to  produce  the  treasurer's 
receipts  for  all  money  paid  into  the  treasury  by  him.  If 
he  neglects  or  refuses  so  to  exhibit  his  accounts,  he  shall 
forfeit  two  and  one-half  per  cent  on  the  sums  committed  to 
him  for  collection.     •      1888, 390,  §§  83. 84.         r.  l.  13,  §  82. 

Section-  85.  The  collector  shall  be  credited  with  all 
sums  abated;  with  the  amount  of  taxes  assessed  upon  any 
person  committed  to  jail  for  non-payment  of  his  tax 
within  one  year  from  the  receipt  of  the  tax  list  by  the 
collector,  and  who  has  not  paid  his  tax;  with  any  sums 
which  the  city  or  town  may  see  fit  to  abate  to  him,  due 
from  persons  committed  after  the  expiration  of  a  year; 
with  all  sums  withheld  by  the  treasurer  of  a  city  or  town 
under  section  eighty-three;  and  with  the  amount  of  the 
taxes  and  charges  where  land  has  been  purchased  or 
taken  by  the  city  or  town  for  non-payment  of  taxes. 

Section  86.  If  a  collector  becomes  insane,  absconds 
or  removes  from  the  city  or  town  or  in  the  judgment  of 
the  board  of  aldermen  or  of  the  selectmen  is  about  so  to 
remove  or  is  otherwise  unable  to  discharge  his  duty,  or 
if  he  refuses  on  demand  to  exhibit  to  the  board  of  alder- 
men or  to  the  selectmen  his  books,  vouchers  and  accounts 
of  collections  as  herein  provided,  the  board  of  aldermen 
or  the  selectmen  may  remove  him  from  office. 

Section  87.  If  a  collector  dies  or  is  removed  from 
office  or  if  the  term  of  office  of  a  collector  who  is  paid  by 
a  fixed  salary  expires  before  the  collection  of  the  taxes 
committed  to  him  is  completed,  the  assessors  shall  commit 
to  his  successor  the  list  of  taxes  uncollected  with  their 
warrant.        1888, 390,  §§  90, 91.  r.  l.  13,  §  85.  1  Met.  524. 

Section  88.  No  action  to  recover  back  a  tax  shall  be 
maintained,  except  as  provided  in  section  seventy-four,  un- 
less it  is  commenced  within  three  months  after  payment 
of  the  tax  nor  unless  such  tax  is  paid  either  after  an  arrest 
of  the  person  paying  it,  a  levy  upon  his  goods,  a  notice  of 
a  sale  of  his  land,  a  protest  in  writing  signed  by  him,  or  a 
withholding  of  money  due  to  him  under  the  provisions  of 
section  eighty-three.  In  an  action  founded  upon  an  error 
or  irregularity  in  the  assessment  or  apportionment  of  a  tax, 
only  the  amount  in  excess  of  the  tax  for  which  the  plain- 


171 

tiff  was  liable  shall  be  recoverable;  and  no  sale,  contract  119^:551; 
or  levy  shall  be  avoided  solely  by  reason  of  such  error  or  }|9MmsI42 

irregularity.  151  Mass.  226.  152  Mass.  204. 

Section  89.     The  following  forms  may  be  used  in  pro-  fo^^gg^  .^^ 
ceedings  for  the  collection  of  taxes  under  the  provisions  of  1889!  334!  I  le! 
this   part,   and,   if   substantially   followed,   theiy   shall   be  iso  Mass.  411'. 
deemed  sufficient  for  the  proceedings  to  which  they  respec- 
tively relate;  but  other  suitable  forms  may  also  be  used. 
These  forms  may  also  be  used,  so  far  as  applicable,  in  the 
collection   of  betterments   and   other   assessments   of  like 
character. 

SCHEDULE  OF  FORMS. 

No.  1.  —  Form  of  Demand  under  Section  14. 

Collector's  Office,  B,  ,  19    . 

To 

Herewith  find  your  tax  bill  due  19     ,  amounting  to 

$  .    Payment  of  the  same  is  hereby  demanded.    [If  interest 

has  been  voted  by  the  city  or  town,  add]  Interest  at  the  rate  of 
per  cent  per  annum  will  be  charged  from  19     .   You  are 

hereby  notified  that  unless  your  tax  is  paid  in  fourteen  days  from 
this  date,  with  all  legal  charges,  the  collector  will  then  proceed  to 
collect  the  same  according  to  law.  C  D, 

Collector  of  Taxes  for  the  of 

No.   2.  —  Form   of  Notice  of   Sale   of  Distrained  Property 
UNDER  Section  21. 

collector's  sale. 

Distrained    upon   a  warrant   of   distress   for  non-payment   of 
taxes,  and  will  be  sold  by  public  auction  on  ,  the  day 

of  ,  19     ,  at        o'clock  m.,  at  ,  unless  said 

taxes,  interest  and  charges  shall  be  paid  before  the  sale,  the  fol- 
lowing described  property,  to  wit:    [Here  describe  the  property.] 

B,  ,  19     .        ^  CD, 

Collector  of  Taxes  for  the  of 

No.   3.  —  Form  of  Notice  of  Adjournment   of   Sale   under 

Section  22. 

[To  the  original  notice  of  sale,  or  a  copy  thereof,  add  the  fol- 
lowing, and  post  at  the  place  of  sale :  — ] 

The  collector  hereby  gives  notice  that  the  above  sale  stands 
adjourned  to  ,  the  day  of  ,  19     ,  at  the 

same  hour  and  place. 

B,  ,  19     .  CD, 

Collector  of  Taxes  for  the  of 


172 


No.  4.  —  Form  of  Certificate  to  be  made  upon  an  attested 
Copy  of  Warrant  when  Corporate  Stock  is  seized  under 
Section  23. 

Collector's  Office_,  B,  ,  19    . 

I  hereby  give  notice  that  I  have  seized  share  of  the  capital 
stock  of  the  [A  B  Company]  standing  in  the  name  of 
bj^  virtue  of  a  warrant  of  distress,  a  copy  of  which  is  herewith 
presented.  Said  share*  being  seized  and  distrained  for  the  non- 
payment of  a  tax  duly  assessed  upon  the  said  by 
the  assessors  of  for  the  year  19  ,  amounting  to 
the  sum  of  which  the  said  ,  after  due 
demand,  has  neglected  and  refused  to  pay. 

B,  ,  19     .  CD, 

Collector  of  Taxes  for  the  of 

No.  5.  —  Form  of  Collector's  Warrant  to  distrain  or  com- 
mit under  Section  31. 

commonwealth   of   MASSACHUSETTS. 

To  the  Sheriffs  of  our  several  Counties,  or  their  Deputies,  or  to 

any  Constable  of  or  Deputy  Collector  of  Taxes  for  the 

of  in  the  County  of 

Greeting  : 

Whereas,  a  resident  of  in  the  County  of 

was  duly  assessed  as  of  the  first  day  of  May  in  the  year 
nineteen  hundred  and  ,  by  the  Assessors  of  the 

of  a  tax  in  the  sum  of  dollars;  and 

the  same  now,  after  the  expiration  of  fourteen  days  from  the  date 
of  a  demand  made  upon  him  by  me  in  accordance  with  law  for  the 
payment  of  the  same,  remains  unpaid;  Therefore, 

In  the  name  of  the  Commonwealth  of  Massachusetts,  you  and 
each  of  you,  are  required  and  directed  to  distrain  the  goods  or 
chattels  of  the  said  person  so  assessed  sufficient  to  satisfy  and  pay 
the  amount  due  for  such  tax  and  interest,  and  all  fees  and  charges 
of  keeping  and  selling  the  same,  saving  and  excepting  the  tools 
or  implements  necessarj'  for  the  trade  or  occupation  of  the  said 
person  so  assessed,  beasts  of  the  plow  necessary  for  the  cultiva- 
tion of  his  improved  land;  military  arms;  utensils  for  housekeep- 
ing necessary  for  upholding  life;  and  bedding  and  apparel  neces- 
sary for  the  said  person  so  assessed  and  his  family.  And  the 
goods  and  chattels  so  distrained  by  you,  you  are  required  to  keep 
at  the  cost  and  charge  of  the  owner  for  four  days  at  least  and 
within  seven  days  after  the  seizure  to  sell  the  same  at  public 
auction,  for  the  payment  of  the  said  amount  due,  having  first 
posted  up  a  notice  of  the  sale  in  some  public  place  in  the  town  or 
city  where  found,  forty-eight  hours  at  least  before  the  sale:  pro- 
vided, however,  that  you  may,  if  you  shall  see  fit,  once  adjourn 
said  sale  for  a  time  not  exceeding  three  days,  in  which  case  you 


173 

shall  forthwith  post  np  a  notice  of  such  adjournment  and  of  the 
time  and  place  of  sale.  And  if  said  distress  shall  be  sold  for  more 
than  the  said  amount  due,  you  shall  return  the  surplus  to  the 
owner  of  such  goods  or  chattels  upon  demand,  with  an  account 
in  writing'  of  the  sale  and  charges.  And  if  you  cannot  find  suffi- 
cient goods  and  chattels  belonging  to  the  person  assessed,  whereon 
to  make  distress,  you  shall  take  the  body  of  the  said  person  and 
him  commit  to  one  of  the  common  jails  in  the  county  in  which 
you  shall  arrest  him,  there  to  remain  until  he  shall  pay  said  tax^ 
interest,  charges,  and  fees,  or  until  he  shall  be  discharged  there- 
from by  due  course  of  law. 

And  in  case  you  shall  conunit  said  person  so  assessed  to  jail  by 
virtue  of  this  Warrant,  you  are  required  to  give  the  keeper  of  the 
jail  wherein  he  may  be  committed  an  attested  copy  of  this  War- 
rant, with  a  certificate  thereon  under  your  hand,  setting  forth  that 
for  want  of  goods  and  chattels  of  the  said  person  whereof  to 
make  distress,  you  have  taken  his  body  and  committed  him  to 
jail  as  aforesaid;  and  also  setting  forth  the  amount  said  person  is 
to  pay  as  his  tax,  interest,  charges,  and  fees. 

Hereof  fail  not,  and  make  return  of  this  Warrant,  with  your 
doings  thereon,  within  sixty  days  from  the  date  hereof. 

Given  under  my  hand  and  seal  this  day  of  19     . 

C  D,  [seal.] 

Collector  of  Taxes  for  the  of 

No.  6.  —  Form  op  Certificate  required  by  Section  27  to  be 
GIVEN  BY  A  Collector  when  a  Commitment  is  made  by 

HIM. 

,19   . 

I  hereby  certify  that  the  tax  assessed  in  the  [city  or  town]  of 

as  of  the  first  day  of  May  in  the  year  upon 

remains  unpaid  for  fourteen  days  after  demand  therefor 

made  by  me;  and  that  for  want  of  goods  and  chattels  whereof  to 

make  distress,  I  commit  the  said  person  to  jail. 

I  also  certify  that  the  amount  the  said  person  is  to  pay  for  said 
tax,  interest,  charges  and  fees,  is  dollars. 

C  D, 
Collector  of  Taxes  for  the  of 

No.  7.  —  Form  of  Certificate  required  by  Section  27  to  be 
indorsed  on  Copy  of  Warrant  in  Case  of  Commitment. 

,19    . 

I  hereby  certify  that,  by  virtue  of  the  warrant,  of  which  the 
within  is  a  true  copy,  for  want  of  goods  and  chattels  whereof  to 
make  distress,  I  have  taken  the  body  of  the  within  named 
and  committed  him  to  jail,  and  that  the  amount  which 
he  is  to  pay  as  his  tax,  interest,  charges  and  fees  is 
dollars.  E  F, 

Deputy  Collector  of  Taxes  for  the  of 


174 


No.  8.  —  Form  of  Summons  under  Section  15. 

B,  ,  19     . 

To 

Your  tax  for  the  year  19     ,  amounting  to  $  {and  interest 

thereon),  is  now  due.  You  are  required  to  pay  the  same  within 
ten  days  from  this  date  with  twenty  cents  for  this  summons.  At 
the  expiration  of  that' time,  if  the  tax  is  not  paid,  the  collector 
will  proceed  to  collect  the  same  according  to  law. 

C  D, 
Collector  of  Taxes  for  the  of 

No.   9.  —  Form  of  Demand  of   Tax  on   Real   Estate   under 

Section  35. 

Collector's  Office^  C,  ,  19    . 

To 

In  compliance  with  the  statute  I  hereby  demand  of  you  pay- 
ment of  dollars,  that  being  the  amount  of  tax  assessed  for 
the  year  19  on  the  estate  in  this  [city  or  town]  [here  give  a 
brief  statement  of  the  estate]  and  owned  or  occupied  by  you  at 
the  date  of  assessment.  You  are  hereby  notified  that  if  said 
amount,  together  with  the  interest,  legal  costs  and  charges 
thereon,  is  not  paid  within  fourteen  days  from  this  date,  the  said 
•estate  will  be  sold  by  public  auction,  pursuant  to  law. 

C  D, 
Collector  of  Taxes  for  the  of 

No.  10.  —  Form  of  Collector's  Notice  of  Sale  of  Real  Estate 
to  be  published  in  a  Newspaper  under  Section  38. 

B,  ,19    . 

The  owners  and  occupants  of  the  following  described  parcels  of 
real  estate  situated  in  the  [city  or  town]  of  ,  in  the 

county  of  and  Commonwealth  of  Massachusetts,  and  the 

public  are  hereby  notified  that  the  taxes  thereon  severally  assessed 
for  the  years  hereinafter  specified,  according  to  the  list  committed 
to  me  as  collector  of  taxes  for  said  by  the  assessors  of 

taxes,  remain  unpaid,  and  that  the  smallest  undivided  part  of  said 
land  sufficient  to  satisfy  said  taxes,  with  interest  and  all  legal 
costs  and  charges,  or  the  whole  of  said  land  if  no  person  offers  to 
take  an  undivided  part  thereof,  will  be  offered  fqr  sale  by  public 
auction  at  the  in  said  on  ?  19     ,  at        o'clock 

'M..,  for  the  payment  of  said  taxes  with  interest,  costs  and  charges 
thereon,  unless  the  same  shall  be  previously  discharged.  [Here 
state  the  name  of  the  party  taxed,  if  known;  a  substantially  ac- 
curate description  of  the  estate;  the  year  in  which  the  tax  is 
assessed;  and  the  amount  of  the  tax  on  each  parcel  of  real  estate.] 

C  D, 
Collector  of  Taxes  for  the  of 


175 


No.  11.  —  Form  of  Affidavit  of  Collector,  Deputy  Collector 
OR  disinterested  Person  of  Demand  under  Section  57  to 
be  recorded  in  the  Registry  of  Deeds. 

S,  ,19    . 

I  [A  B,  collector,  deputy  collector  or  a  disinterested  person,] 
hereby  certify  that  on  the  day  of  ,  19     ,  I  served  upon 

a  demand  for  the  payment  of  a  tax  of  dollars 

assessed  upon  him  by  the  assessors  of  ,  in  19     ,  upon  the 

estate  in  said  [here  give  a  substantially  accurate  description 

of  the  estate],  with  a  notice  that  if  said  amount  and  interest 
thereon,  together  with  the  legal  costs  and  charges  and  interest 
thereon,  was  not  paid  within  fourteen  days  from  the  date  thereof, 
that  the  said  estate  would  be  sold  by  public  auction,  pursuant 
to  law.  A  B. 

Commonwealth  of  Massachusetts. 
H  ,  ss.  .  19    . 

Then  personally  appeared  the  said  A  B,  and  made  oath  that 
this  statement  by  him  subscribed  is  true. 

Before  me. 

Justice  of  the  Peace. 

No.  12.  —  Form  of  Affidavit  under  Section  57,  when  the 
Demand  is  made  upon  two  or  more  Persons. 

S,  ,19     . 

I   [A  B,  collector,  deputy  collector  or  a  disinterested  person,] 
hereby  certify  that  on  or  since  the  day  of  19     ,  I 

served  on  each  of  the  parties  hereafter  mentioned,  on  the  date  and 
in  the  manner  specified,  as  may  be  seen  by  reference  to  their  re- 
spective names,  a  demand  like  the  blank  hereunto  attached,  the 
blanks  being  first  filled  with  the  date,  name,  amount  of  the  tax, 
and  location  of  the  real  estate.  A  B. 


Names. 


Amount  of  Tax. 


Manner  and  Date  of  Service. 


Commonwealth  of  Massachusetts. 
H  ,  ss.  S,  ,  19    . 

Then  personally  appeared  the  said  A  B,  and  made  oath  that 
the  above  statement  by  him  subscribed  is  true. 

Before  me, 

Justice  of  the  Peace. 
[Here  annex  the  blank  form.  No.  9,  referred  to  in  the  affidavit.] 


176 


No.  13.  —  Form  of  Affidavit  of  posting  and  publishing  Ad- 
vertisement OF  Sale  under  Section  57. 

S,  ,19    . 

I,  A  B,  of  ,  in  the  County  of  ,  and  Com- 

monwealth of  Massachnsetts  [collector^  deputy  collector  or  a  dis^ 
interested  person,]  hereby  certify  that  three  weeks  before  the 
time  of  sale  I  witnessed  the  posting  [or  posted]  pursuant  to  law 
the  printed  notice  of  the  collector  of  taxes,  a  copy  whereof  is 
hereto  annexed,  in  a  convenient  and  public  place  in  his  precinct, 
to  wit:  The  ,  in  said  [city  or  town],  and  that  said  notice 

was  advertised  three  weeks  successively  in  the  ,  a  news- 

paper published  in  [city  or  town]  [or  if  there  is  no  such  news- 
paper, state  that  fact  and  add :  in  said  County] ,  the  last  publica- 
tion being  at  least  one  week  before  the  advertised  time  of  sale; 
in  accordance  with  law.  A  B. 

Commonwealth  of  Massachusetts. 
H  ,  ss.  S,  ,  19    . 

Then  personally  appeared  the  above  named  ,  and  made 

oath  that  the  foregoing  statements  by  him  subscribed  are  true. 

Before  me, 

Justice  of  the  Peace. 
[Here  annex  a  copy  of  the  advertisement.] 

No.  14.  —  Form  of  Deed  under  Sections  41  and  43. 
Commonwealth  of  Massachusetts. 
To  all  Persons  to  whom  these  Presents  may  come, 

I,  ,  Collector  of  Taxes  for  the  [city  or  town]  of  , 

in  the  County  of  and  Commonwealth  of  Massachusetts, 

Send  Greeting: 
Whereas,  the  Assessors  of  Taxes  cf  said  of  , 

in  the  lists  of  assessments  for  taxes,  which  they  committed  to  me 
to  collect  for  the  year  one  thousand  nine  hundred  and  , 

duly  assessed  as  owner  of  the  land  in  said 

,  which  is  hereinafter  described,  the  sum  of 
dollars  and  cents,  for  State,  County  and  [City 

or  Town]  Taxes  thereon;  and  whereas,  on  the  day  of  ,  A.D. 
19  ,  I  duly  demanded  of  said  [if  the  demand  was  made  on  a 
mortgagee  or  an  attorney  of  a  non-resident  owner,  here  insert 
the  fact]  the  pajTnent  of  said  taxes,  so  as  aforesaid 

assessed  on  said  land,  and  the  same  were  not  paid;  and  whereas, 
after  the  expiration  of  fourteen  days  from  the  time  of  demanding 
payment  of  said  taxes  as  aforesaid,  the  same  still  remaining  un- 
paid, I  duly  advertised  that  the  smallest  undivided  part  of  said 
land  sufficient  to  satisfy  said  taxes  with  interest  and  all  legal 
costs  and  charges,  or  the  w^hole  of  said  land  if  no  person  offers 
to  take  an  undivided  part  thereof,  would  be  sold  by  public  auction 
for  the  payment  of  said  taxes  with  interest,  and  all  legal  costs 


177 

and  charges,  on  the  day  of  ,  A.D.  19     ,  at 

o'clock  in  the  noon,  at  the  ,  in  said 

,  by  publishing  an  advertisement  thereof,  containing 
also  a  substantially  accurate  description,  and  the  name  of  the 
OAvner  of  said  land,  and  the  amount  of  the  taxes  so  as  aforesaid 
assessed  thereon,  in  the  ,  a  newspaper  published  in 

,  in  the  county  where  said  land  lies,  three  weeks 
successively,  the  last  publication  whereof  was  one  week  before 
the  time  appointed  for  the  sale,  and  by  posting  the  said  adver- 
tisement in  public  and  convenient  places  in 
said  ,  to  wit:  the  ,  three  weeks 
before  the  time  appointed  for  said  sale;  and  whereas,  said  taxes 
so  as  aforesaid  assessed  on  said  land  were  not  paid,  I  proceeded 
at  the  time  and  place  appointed  as  aforesaid  for  the  sale,  to  sell 
said  land  by  public  auction  for  the  discharge  and  payment  of  said 
taxes  thereon  with  interest,  and  said  legal  costs  and  charges  [if 
the  sale  is  adjourned  add  here],  and  no  person  appeared  and  bid 
for  an  undivided  part  or  for  the  whole  of  the  land  thus  offered 
for  sale  an  amount  equal  to  the  said  taxes,  interest,  costs  and 
charges,  and  I  thereupon,  at  said  time  and  place  appointed  for 
said  sale,  adjourned  said  sale  until  the  day  of 
,  A.D.  19  ,  at  o'clock  in  the  noon,  at  the  same 
place,  and  then  and  there  made  public  proclamation  of  said  ad- 
journment; and  in  like  manner  in  all  respects  and  for  the  same 
cause,  I  adjourned  said  sale  [here  state  the  successive  dates, 
hours  and  places  to  which  the  sale  was  adjourned],  and  then  and 
there  made  public  proclamation  of  said  adjournments;  and  at  the 
time  and  place  so  fixed  and  proclaimed  for  making  said  sale  on 
each  of  the  several  days,  I  proceeded  to  offer  for  sale  said  land 
by  public  auction  for  the  payment  of  said  taxes,  interest,  costs 
and  charges,  and  no  person  appeared  at  either  time  so  fixed  by 
adjournment  for  said  sale  and  bid  a  sum  equal  to  said  taxes,  in- 
terest, costs  and  charges,*  until  on  the  day  of  ,  A.D. 
19  ,  the  time  and  place  so  fixed  for  said  sale  by  the  last  of  the 
said  adjournments  [use  such  of  these  averments  as  will  conform 
to  the  facts],  I  proceeded  again  to  offer  for  sale  by  public  auction 
for  the  payment  of  said  taxes,  interest,  costs  and  charges,  the 
smallest  undivided  part  of  said  land  sufficient  for  the  payment 
of  said  taxes  with  interest  and  legal  costs  and  charges,  [and  no 
person  offering  at  said  auction  to  take  an  undivided  part  of  said 
land,  the  whole  of  said  land  was  struck  off  to               *  of 

in  the  county  of  and  State  of 

for  the  sum  of  dollars  and  cents,  h§  being  the 

highest  bidder  therefor:]     [If  an  offer  is  made  for  an  undivided 
part  substitute  for  the  portion  in  brackets  the  following:   and 
of  in  the  county  of  and  State 

of  offered  at  said  auction  to  take  one  undivided 

part  of  said  land  and  to  pay  therefor  the  amount  of  said  taxes 
with  interest  and  the  legal  costs  and  charges,  and  that  being  the 
smallest  undivided  part  of  said  land  offered  to  be  taken  for  the 
payment  of  said  taxes,  interest,  costs  and  charges,  one  undivided 
part  of  said  land  was  struck  off  to  said  .] 


178 

Therefore,  know  ye,  that  I,  the  said  Collector  of 

Taxes  as  aforesaid,  by  virtue  of  the  power  vested  in  me  by  law, 
and  in  consideration  of  the  said  sum  of  dollars  and 

cents  to  me  paid  by  said  ,  the  receipt  whereof  I  do  hereby 

acknowledge,    do   hereby   give,    grant,   bargain,    sell   and   convey 
unto  the  said  [the  following  described 

land,  the  same  being  the  land  taxed  as  aforesaid,  to  wit:  Here 
describe  the  land.]  [If  a  sale  is  made  of  an  undivided  part  sub- 
stitute for  the  words  in  .brackets  the  following:  one  undivided 
part  of  the  following  described  land,  being  the  land 
taxed  as  aforesaid,  to  wit:  Here  describe  the  land.] 

To  have  and  to  hold  the  same,  to  the  said  ,  h 

heirs  and  assigns,  to  and  their  use  and  behoof 

forever;  subject  to  the  right  of  redemption  by  any  person  legally 
entitled  to  redeem  the  same. 

And  I,  the  said  collector,  do  covenant  with  the  said  , 

h      heirs  and  assigns,  that  the  sale  aforesaid  has,  in  all  particu- 
lars, been  conducted  according  to  law.f 

In  witness  whereof,  I,  the  said  ,  Collector  as  aforesaid, 

have  hereunto  set  my  hand  and  seal,  this  day  of  ,  in 

the  year  of  our  Lord  one  thousand  nine  hundred  and 

[seal.] 
Collector  of  Taxes  for  the  of 

Signed,  sealed  and  delivered  in  presence  of 

SS.  19     . 

Then  personally  appeared  the  above  named  ,  Collector 

of  Taxes  for  the  of  ,  and  acknowledged  the  fore- 

going instrument  to  be  his  free  act  and  deed. 

Before  me. 

Justice  of  the  Peace. 


No.   15.  —  Form  of  Deed  when  the  City  or  Town  is  the 
Purchaser  under  Sections  46  and  48. 

[Proceed  as  in  No.  14  to  the  *  and  continue  as  follows :  — ]  and 
no  person  appeared  and  bid  for  the  estate  thus  offered  for  sale 
an  amount  equal  to  the  said  taxes,  interest,  costs  and  charges,  and 
I  thereul3on,  at  said  time  and  place  appointed  for  sale,  adjourned 
said  sale  until  the  day  of  A.D.  19     ,  at 

o'clock  in  the  noon  at  the  same  place,  and  then  and  there 

made  public  proclamation  of  said  adjournment;  and  in  like  man- 
ner in  all  respects  and  for  the  same  cause  I  adjourned  said  sale 
[here  state  the  successive  dates,  hours  and  places  to  which  the 
sale  was  adjourned],  and  then  and  there  made  public  proclama- 
tion of  said  adjournments;  and  at  the  time  and  place  so  fixed 
and  proclaimed  for  making  said  sale  on  each  of  said  several 
days,  1  proceeded  to  offer  for  sale  said  real  estate  by  public 
auction  for  the  payment  of  said  taxes,  interest,  costs  and  charges, 
and  no  person  appeared  at  either  time  so  fixed  by  adjournment 
for  said  sale  and  bid  a  sum  equal  to  said  taxes,  interest,  costs  and 
charges,  and  at  the  time  and  place  so  fixed  for  said  sale  by  the 


179 

last  of  the  said  adjournments,  namely,  on  the  day  of 

,  A.I).  19     ,  at  o'clock  in  the  noon,  I  made 

a  public  declaration  of  all  the  facts  hereinbefore  recited;  and  no 

person  then  appeared  and  bid  a  sum  equal  to  said  taxes,  interest, 

costs  and  charges  [if  only  one  adjournment  is  made,  change  these 

averments  to  conform  to  the  facts] ;  and  I  thereupon  then  and 

there  immediately  gave  public  notice  that  I  should,  and  that  I 

then   and  there  did  purchase  on  behalf  of  the  said  of 

,  said  real  estate  for  the  sum  of  dollars  and 

cents,  being  the  amount  of  said  taxes,  interest,  costs  and 

charges ; 

Therefore  know  ye,  that  I,  the  said  ,  Collector  of  Taxes 

as  aforesaid,  by  virtue  of  the  power  vested  in  me  by  law,  and  in 
consideration  of  the  premises,  hereby  give,  grant,  bargain,  sell 
and  convey  unto  the  said  of  ,  the  following  de- 

scribed real  estate,  the  same  being  the  land  taxed  as  aforesaid,  to 
wit:  [Here  describe  the  estate.] 

To  have  and  to  hold  the  same,  to  the  said  [city  or  town]  of 
,  and  its  assigns,  to  its  and  their  use  and  behoof  forever; 
subject  to  the  right  of  redemption  by  any  person  legally  entitled 
to  redeem  the  same. 

And  I,  the  said  Collector,  do  covenant  with  the  said  of 

,  and  its  assigns,  that  the  sale  aforesaid  has,  in  all  par- 
ticulars, been  conducted  according  to  law.  [Conclude  as  in  No.  14 
from  the  f.] 

No.  16.  —  Form  of  Deed  to  City  or  Town,  when  the  Pur- 
chaser PAILS  TO  PAY,  ETC.^  UNDER  SECTIONS  47  AND  48. 

[Proceed  as  in  No.  14  to  the  *  and  continue  as  follows:  — ]  and 
the  said  real  estate  was  struck  off  to  of  in  the 

County  of  and  State  of  for  the  sum  of  dol- 

lars and  cents,  he  being  the  highest  bidder  therefor;  and 

whereas,  the  said  failed  to  pay  to  me  the  sum  offered  by 

him  as  aforesaid,  and  receive  his  deed  of  the  premises  bid  off  by 
him,  within  ten  days  after  the  said  sale,  and  the  said  sale  became 
null  and  void,  and  the  said  of  thereby  became 

the  purchaser  of  the  premises  so  bid  off  by  the  said 
for  the  sum  of  dollars  and  cents,  being  the 

amount  of  said  taxes,  interest,  costs  and  charges; 

Therefore  know  ye,  that  I,  the  said  Collector  of  Taxes 

as  aforesaid,  by  virtue  of  the  power  vested  in  me  by  law,  and  in 
consideration  of  the  premises,  hereby  give,  grant,  bargain,  sell 
and  convey  unto  the  said  of  ,  the  follow- 

ing described  real  estate,  the  same  being  the  land  taxed  as  afore- 
said, to  wit :  [Here  describe  the  estate.] 

To  have  and  to  hold  the  same,  to  the  said  of  , 

and  its  assigns,  to  its  and  their  use  and  behoof  forever;  subject 
to  the  right  of  redemption  by  any  person  legally  entitled  to 
redeem  the  same. 

And  I,  the  said  Collector,  do  covenant  with  the  said  of 

and  its  assigns,  that  the  sale  aforesaid  has,  in  all  par- 
ticulars been  conducted  according  to  law.  [Conclude  as  in  No. 
14  from  the  f.] 


380 


No.    17.  —  Form    of    Notice    of    Intention    to    take    Real 
Estate  under  Section  53. 

collector's  notice. 

The  owners  and  occupants  of  the  following-described  parcels 
of  real  estate  situate  in  the  of  ,  in  the  County  of 

,  and  Commonwealth  of  Massachusetts,  and  all  other 
persons,  are  hereby  notified  that  the  taxes  thereon,  severally 
assessed  for  the  year  hereinafter  specified,  according  to  the  list 
committed  to  me  as  Collector  of  Taxes  for  the  said  of 

,  by  the  Assessors  of  Taxes  of  said  ,  remain  un- 

paid, and  that  said  parcels  of  real  estate  will  be  taken  for  the 
said  of  ,  on  the  day  of 

A.D.   19     ,  at  o'clock         m.^  for  the  payment  of  said 

taxes,  together  with  the  interest,  costs  and  charges  thereon,  un- 
less the  same  shall  -be  previously  discharged.  [Here  state  the 
name  of  owner  or  occupant,  a  description  of  the  parcel  or  parcels 
of  lands,  the  year  for  Avhich  the  taxes  were  assessed,  and  the 
sum  assessed  upon  each  parcel.] 

CD, 
Collector  of  Taxes  for  the  of 

No.  18.  —  Form  of  Affidavit  of  Demand  and  Notice  to  be 

ANNEXED  TO  THE  INSTRUMENT  OF  TaKING  UNDER  SECTION  57. 

I,  C  D,  of  in  the  County  of  ,  and  Com- 

monwealth of  Massachusetts,  on  oath  depose  and  say  that  on  the 
day  of  A.D.  19     ,  I,  as  Collector  of  Taxes  for 

the  of  ,  made  a  written  demand  on  for  the 

amount  of  the  tax  assessed  by  the  assessors  of  said  of 

,  as  of  the  first  day  of  May,  A.D.  19     ,  upon  the 
said  ,  with  the  interest,  costs  and  charges,  then  due,  on 

certain  real  estate  situated  in  said  of  ,  by  [Here 

state  manner  in  which  the  demand  was  made],  of  which  the  fol- 
lowing is  a  true  copy :  — 

'•'  Collector's  Office,  19    . 

To  ,  I  hereby  demand  of  you  the  payment  of 

dollai-s  and  cents,  that  being  the  amount  of  tax  assessed 

for  the  year  19      by  the  assessors  of  ,  on  the  real  estate 

[Here  describe  the  estate]  owned  by  you.  You  are  hereby  noti- 
fied that  if  said  amount,  together  with  the  interest,  costs  and 
charges  thereon,  is  not  paid  within  fourteen  days  from  this  date, 
the  said  real  estate  will  be  taken  for  said  taxes  for  the  said  [city 
or  town]  of  .    Tax,  $  ;  interest,  costs  and  charges, 

$ 

C  D, 
Collector  of  Taxes  for  the  of  ." 

[If  notice  is  published  and  posted,  add:]  And  I,  the  said  C  D, 
do  further  depose  and  say  that  I  posted  and  published  notices,  of 


181 

which  the  following  is  a  copy  [Here  annex  a  copy  of  the  notice], 
as  follows:  A  copy  thereof  was  posted  on  [Here  state  where 
posted],  and  I  also  published  a  copy  of  said  notice  in  the  , 

a  newspaper  published  in  said  [If  there  be  no  such  paper 

published  in  said  town,  state  the  fact  and  add,  "  in  in 

said  county"],  three  weeks  successively,  that  the  posting  of  said 
notices  and  the  first  publication  thereof  was  more  than  fourteen 
days  after  making  the  demand  as  aforesaid;  and  I  do  further 
depose  and  say  that,  at  the  date  of  the  instrument  of  taking, 
hereto  annexed,  the  amount  of  taxes  due  on  the  estate  therein  de- 
scribed, with  the  interest,  costs  and  charges,  amounted  to  the  sima 
of  dollars  and  cents,  and  that  the   parcel  or 

parcels  of  land  were  taken  for  the  reason  that  the  taxes  remained 
unpaid  at  the  time  of  the  said  taking. 

C  D, 
Collector  of  Taxes  for  the  of 

ss.  ,  19     . 

Then  personally  appeared  the  above  named  C  D,  and  made  oath 
that  the  foregoing  afiidavit  by  him  subscribed  is  true. 

Before  me, 

Justice  of  the  Peace. 

No.  19.  —  Form  of  Takixg  of  Real  Estate  under  Section  54. 

Whereas,  the  tax  assessed  by  the  assessors  of  as  of  the 

first   day   of   May,   in   the  year  19     ,   upon  as  the 

owner  or  occupant  of  the  real  estate  hereinafter  described,  was 
duly  committed  to  me  as  Collector  of  Taxes  for  said  of 

;  and  whereas,  the  said  taxes,  amounting  to 
dollars  and  cents,  have  not  been  paid;  and  whereas,  a 

demand  for  the  payment  of  said  taxes  and  the  interest,  costs  and 
charges  then  due  was  made  by  me  on  the  said  on  the 

day  of  ,  last  past,  in  conformity  to  law;  and 

whereas,  notice  of  my  intention  to  take  said  real  estate  by  virtue 
of  the  authority  vested  in  me  as  Collector  of  Taxes  for  said 
has  been  duly  made,  as  by  law  required;  and  whereas, 
the  said  taxes,  at  the  date  of  this  instrument,  remain  unpaid ;  now, 
therefore,  KNOW  ALL  MEN  BY  THESE  PRESENTS,  that  I, 
,  as  Collector  of  Taxes  as  aforesaid,  by  virtue  of 
the  power  and  authority  in  me  vested  as  aforesaid,  have  taken, 
and  by  these  presents  do  take,  for  the  said  of  , 

subject  to  redemption  according  to  law,  the  following  described 
lot  or  parcel  of  land,  with  the  buildings  thereon,  the  same  being 
the  estate  assessed  as  aforesaid,  to  wit :  [Here  describe  the 
estate.]    The  said  is  the  only  person  known  to  me  as 

owner  of  the  above  described  estate. 

In  witness  whereof,  I,  the  said  ,  as  Collector  as 

aforesaid,  hereunto  set  my  hand  and  seal  this  day  of 

,  in  tlie  year  nineteen  hundred  and 

C  D,  [seal.] 

Collector  of  Taxes  for  the  of 


182 


No.  20.  —  Form  of  Deed  by  City  or  Town  when  Estate  is 
redeemed  under  section  58,  to  be  executed  by  the  proper 
Officers  of  the  City  or  Town. 

know  all  aien  by  these  presents, 

That  the  of  ,  in  consideration  of  ,  to 

it  paid  by  of  ,  the  receipt  whereof  is  hereby 

acknowledged,  does  hereby  remise,  release,  and  forever  quitclaim 
unto  the  said  all  the  right,  title  and  interest  which  the 

said  of  acquired,  by  or  under  a  deed  made  to  it 

by  ,  the  Collector  of  Taxes  for  said  [city  or  town]  of 

,  dated  the  day  of  in  the  year  of  our 

Lord  one  thousand  nine  hundred  and  ,  and  recorded  with 

Deeds,  Volume  Page  in  and  to  the  follow- 

ing parcel  of  real  estate  in  said  ,  viz.:   [Here  describe 

the  estate.] 

To  have  and  to  hold  the  above  released  premises,  with  all  the 
privileges  and  appurtenances  to  the  same  belonging,  to  the  said 
,  h       heirs  and  assigns,  to  h       and  their  use  and 
behoof  forever. 

In  witness  whereof,  the  said  of  has  caused  its 

corporate  seal  to  be  hereunto  affixed,  and  these  presents  to  be 

signed,  acknowledged  and  delivered  in  its  name  and  behalf  by 

,  its  ,  hereto  duly  authorized,  this  day 

of  ,  in  the  year  of  our  Lord  nineteen  hundred  and 

[City  or  Town]  of  .  [seal.] 

Signed  and  sealed  in  presence  of 

By 
ss.  19    . 

Then  personally  appeared  the  above  named  ,  of 

for  the  [city  or  town]  of  ,  and  acknowledged  the 

foregoing  instrument  to  be  the  free  act  and  deed  of  said  [city  or 
town]  of 

Before  me, 

Justice  of  the  Peace. 

No.  21.  —  FoR^i  OF  Affidavit  of  a  disinterested  Person  of 
Search  for  Purchaser,  his  Agent  or  Attorney  when 
they  cannot  be  found,  under  section  60. 

I,  ,  on  oath  depose  and  say  that  in  behalf  of  , 

who  claims  a  right  to  redeem  certain  lands  situated  in  the 
of  ,  which  were  sold  by  ,  Collector  of  Taxes  for 

said  ,  for  non-payment  of  taxes  assessed  upon 

and  described  in  a  deed  of  said  Collector  to  ,  dated 

19     ,  and  recorded  with  Deeds,  Volume  Page 

I  have  made  diligent  search  for  said  purchaser  in  the  place  of 
which  he  is  described  as  a  resident,  and  that  I  have  also  made 
diligent  search  for  an  agent  or  attorney  of  such  purchaser,  but 
after  such  diligent  search  have  been  unable  to  find  either  the 
purchaser  or  any  such  agent  or  attorney. 


183 

ss.  ,  19    . 

Then  personallj^  appeared  the  above  named  and  made 

oath  that  the  foregoing  statement  by  him  subscribed  is  true. 

Before  me, 

Justice  of  the  Peace. 

No.   22.  —  Form  of  Receipt  by   Collector  to  a  Mortgagee, 
UNDER  Section  62. 

Collector's  Office,  ,  19    . 

I,  ,  Collector  of  Taxes  for  the  of  , 

hereby  certify  that  the  Assessors  of  Taxes  of  said  of 

,  in  the  list  of  assessments  for  taxes,  which  they  com- 
mitted to  me  to  collect  for  the  year  one  thousand  nine  hundred 
and  ,  duly  assessed  the  sum  of  dollars  and 

cents,  as  owner  of  the  real  estate  situated  and  described 
as  follows,  viz. :   [Here  describe  the  real  estate.] 

and  I  further  certify  that  the  said  neglected 

to  pay  such  tax  for  three  months  after  demand,  and  I  thereupon 
made  a  demand  therefor  upon  who  claimed  to  be  the 

holder  of  a  mortgage  upon  said  real  estate;  and  that  the  said 

has  paid  to  me  the  sum  of  dollars  and 

cents,  being  the  amount  of  said  tax,  with  all  interest,  costs  and 
charges,  the  receipt  of  which  I  hereby  acknowledge. 

C  D, 
Collector  of  Taxes  for  the  of 

SS.  ,  19    . 

Then  personally  appeared  the  above  named  and  made 

oath  that  the  foregoing  statement  by  him  subscribed  is  true. 

Before  me. 

Justice  of  the  Peace. 

No.  23.  —  FoRit  OF  Receipt  by  Collector  under  Sections  63 

AND  65. 

Collector's  Office,  ,  19    . 

I,  ,  Collector  of  Taxes  for  the  of  , 

hereby  certify  that  the  Assessors  of  Taxes  of  said  of 

,  in  the  list  of  assessments  for  taxes,  which  they  com- 
mitted to  me  to  collect  for  the  year  one  thousand  nine  hundred 
and  ,  duly  assessed  the  sum  of  dollars 

and  cents,  as  owner  of  the  real  estate  situated  and  de- 

scribed as  follows,  viz. :  [Here  describe  the  real  estate.] 

and  I  further  certify  that  proceedings  have  been  com- 
menced by  me  for  the  sale  of  said  real  estate  for  said  tax,  and 
that  who  claimed  to  be  the  holder  of  a  mortgage  thereon, 

has  paid  to  me  the  sum  of  dollars  and  cents,  being 

the  amount  of  said  tax,  with  interest,  costs  and  charges,  the  re- 
ceipt of  which  I  hereby  acknowledge. 

CD, 
Collector  of  Taxes  for  the  of 


184 

ss.  ,  19    . 

Then  personally  appeared  the  above  named  and  made 

oath  that  the  foregoing  statement  by  him  subscribed  is  true. 

Before  me, 

Justice  of  the  Peace. 

No.  24.  —  Form  of  Notice  of  Sale  of  unredeemed  Real 
Estate,  in  behalf  of  a  City  or  Town,  within  Two  Years 
AFTER  Expiration  of  the  Right  of  Redemption,  under 
Section  67. 

Sale  of  Unredeemed  Real  Estate  by  the  of 

Collector's  Office,  ,  19    . 

In  conformity  with  the  laws  of  the  Commonwealth  of  Massa- 
chusetts, the  public  and  all  persons  interested  as  former  owners 
or  occupants  of  each  of  the  following  described  parcels  of  real 
estate  situated  in  the  of  in  the  County  of 

and  Commonwealth  aforesaid,  are  hereby  notified  that  said 
parcels  have  been  conveyed  according  to  law  to  said  [city  or 
town]  of  for  non-payment  of  taxes  and  assessments  and 

the  time  within  which  each  of  the  estates  might  be  redeemed  by 
the  owners  thereof  having  expired,  each  of  said  parcels  will  be 
offered  for  sale  in  accordance  with  Section         ,  of  the  by 

public  auction  at  the  in  said  on  the 

day  of  A.D.  19     ,  at  o^clock       m.,  and  to  the 

highest  bidder  for  each  of  the  several  parcels  a  quitclaim  deed* 
will  be  delivered.  For  further  particulars  reference  is  made  to 
the  Registry  of  Deeds  for  the  County  of  ,  the  volume  and 

page  numbers  following  the  description  of  each  parcel,  indicating 
the  record  of  the  deed  under  which  the  said  .     of 

now  holds  title  to  the  estate  described. 

The  sums  set  against  the  several  estates  show  the  amounts  due 
thereon  respectively  for  the  taxes  and  assessments  for  the  non- 
payment of  which  said  estate  was  sold  to  [or  taken  by]  the  said 
together  with  the  subsequent  taxes  and  assessments, 
interest  on  the  same,  and  all  lawful  costs  and  charges.  And  none 
of  the  said  estates  will  be  sold  for  less  than  the  amount  set 
against  the  said  estates,  respectively. 

[Here  set  out  the  name  of  the  original  owner  or  occupant  if 
known,  a  description  of  each  parcel,  the  place  of  registry,  volume 
and  page,  the  years  in  which  assessed  and  the  least  amount  for 
which  the  sale  will  be  made.]  C  D, 

Collector  of  Taxes  for  the  of 

No.   25.  —  Form   of  Deed  of  Unredeemed   Tax   Title   under 
Section  67. 

KNOW  ALL   men  BY   THESE   PRESENTS. 

That,  whereas  the  real  estate  hereinafter  described  was  by 
deed  of  ,  Collector  of  Taxes,  dated  A.D.  19     , 

and  recorded  with  Deeds,  Volume  Page  , 


185 

duly  conveyed  to  the  [city  or  town]  of  ,  in  the  County 

of  and  Commonwealth  of  Massachusetts,  for  the  non- 

payment of  taxes,  and  whereas  no  person  lawfully  entitled  has, 
within  the  time  prescribed  by  law,  redeemed  said  real  estate,  and 
whereas  I,  the  Collector  of  Taxes  of  the  said  [city  or  town]  of 
,  acting  under  section  ,  of  the  ,  duly  ad- 

vertised  said  real  estate   to  be  sold  by  public   auction   on  the 

day  of  ?  19     >  at  o'clock  in  the 

noon,  at  the  in  said  [city  or  town]  of  by  pub- 

lishing an  advertisement  thereof,  containing  a  substantially  accu- 
rate description  of  said  real  estate  in  the  ,  a  newspaper 
published  in  ,  three  weeks  successively,  the  last  publica- 
tion whereof  was  at  least  one  week  before  the  time  appointed 
for  the  sale,  and  by  posting  a  like  advertisement  in 
public  and  convenient  place  in  said  [city  or  town]  of  , 
to  wit :  the  ,  in  said  [city  or  town]  and  also  on  said  real 
estate,  three  weeks  before  the  time  appointed  for  said  sale;  and 
whereas,  the  amounts  due  on  said  estate  not  being  paid,  the  [city 
or  town]  of  by  its  Collector  of  Taxes,  thereto 
duly  authorized  by  statute,  proceeded  at  the  time  and  place  ap- 
pointed as  aforesaid  for  the  sale,  to  sell  said  real  estate  by  public 
auction,  and  said  real  estate  was  then  and  there  struck  off  to 
,  of  ,  in  the  County  of  ,  and  State  of 
,  for  the  sum  of  dollars  and  cents,  he 
being  the  highest  bidder  therefor; 

Now,  therefore,  the  [city  or  town]  of  by  its  Collector 

of  Taxes,  by  virtue  of  the  statutes  in  such  case  made  and  pro- 
vided, in  consideration  of  dollars  and  cents  paid 
by  said  ,  the  receipt  whereof  is  hereby  acknowledged, 
does  hereby  remise,  release,  and  forever  quitclaim  unto  the  said 
h  heirs  and  assigns,  all  the  right,  title  and  interest 
which  the  said  [city  or  town]  of  acquired,  by  or  under 
the  deed  above  mentioned,  in  and  to  the  following  parcel  of  real 
estate  in  said               ,  viz. :   [Here  describe  the  estate,] 

To  have  and  to  hold  the  above  released  premises,  with  all  the 
privileges    and    apj^urtenances    thereto    belonging,    to    the    said 
,  h      heirs  and  assigns,  to  h      and  their  use  and  behoof 
forever. 

In  witness  whereof,  the  said  [city  or  towTi]  of  has  caused 

its  seal  to  be  hereto  affixed  and  these  presents  to  be  signed,  ac- 
knowledged and  delivered  in  its  name  and  behalf  by  its  Collector 
of   Taxes,   hereto   duly  authorized  by  law,   this  day  of 

,  in  the  year  nineteen  hundred  and 

[City  or  Town]  of  .  [seal.] 

CD, 
Collector  of  Taxes. 

[To  be  acknowledged  by  the  Collector  as  the  free  act  and  deed 
of  the  Citv  or  Town  according  to  the  form  prescribed  in  Form 
No.  20.] 


186 


No.  26.  —  Form  of  Affidavit  of  the  Collector  of  the  Non- 
appearance OF  A  Purchaser,,  or  the  Failure  of  the 
Bidder  to  pay  the  Sum  bid,  under  Section  68. 

I,  C  D,  Collector  of  Taxes  for  the  [city  or  town]  of  in 

the  County  of  and  Commonwealth  of  Massachusetts  on 

oath  depose  and  say  that  the  advertisement  of  the  sale  of  un- 
redeemed real  estate,  a  -copy  of  which  is  hereto  annexed,  was 
published  and  posted  according  to  law,  and  that  at  the  time  and 
place  of  sale  as  stated  in  the  same  [no  person  appeared  and  bid 
for  the  real  estate  advertised  in  said  advertisement  against  the 
name  of  the  sum  or  amount  therein  stated,  or  more,  or 

the  person  to  whom  the  estate  is  sold  does  not,  within  ten  days, 
pay  to  the  Collector  the  sum  bid  by  him]  and  the  estate  advertised 
as    aforesaid    against   the    name   of  was   struck   off   to 

,  for  the  sum  of  dollars  and  cents,  he 

being  the  highest  bidder  therefor.  I  further  depose  and  say  that 
said  failed  to  pay  to  me  as  such  Collector,  within  ten 

days,  the  sum  offered  by  him  for  said  estate. 

C  D, 
Collector  of  Taxes  for  the  of 

SS.  19     . 

Then  personally  appeared  the  above  named  ,   Col- 

lector of  Taxes  for  the  of  ,  and  made  oath  that 

the  above  statement  by  him  subscribed  is  true. 

Before  me. 

Justice  of  the  Peace. 
[Here  annex  a  copy  of  the  advertisement.] 


No.    27.  —  Forms    of    Notices    when    Tax    Title  is  Deemed 
Invalid,  under  Sections  70  and  72. 

[from  the  assessors  to  the  collector.] 

Office  of-  the  Board  of  Assessors,  19    . 

To  the  Collector  of  Taxes  for  the  of 

Sir:    You  are  hereby  notified  that  the  tax  assessed  as  of  the 
first  day  of  May,  19     ,  in  the  name  of  upon  an  estate 

estimated  to  contain  [here  insert  the  area]  land,  situated  [here  in- 
sert the  name,  of  street  or  other  description]  was  invalid  by 
reason  of  error  in  assessment ;  and  that  any  deed  given  by  you  in 
consequence  of  a  sale  for  the  non-payment  of  such  tax  conveyed 
no  valid  title  to  the  purchaser. 

Board  of  Assessors  of  the  of  ,  by 

A  B, 
One  of  said  Assessors. 


187 


No.  28.  — 

[from  the  collector  to  the  holder  of  the  title.] 
Collector's  Office,  19    . 

To 

You  are  hereby  notified  that  I  have  reason  to  believe  that  the 
title  conveyed  to  by  Collector  and  recorded  with 

Deeds,  volume  page  of  an  estate  described 

as  follows  [here  describe  estate],  in  the  name  of  is  invalid 

by  reason  of  an  error  [in  the  assessment  for  the  year  19  ,  or  in 
the  proceedings  for  the  sale.]  [Here  give  a  brief  statement  of 
the  defect:] 

and  I  do  hereby,  ,  notify  and  require  you,  within  thirty 

days  from  the  time  when  this  notice  shall  be  served  upon  you,  to 
surrender  and  discharge  the  deed  so  given,  and  to  receive  from  the 
of  the  sum  due  therefor,  with  interest  as  pro- 

vided by  law,  or  to  file  with  the  Collector  a  written  statement 
that  you  refuse  to  make  such  surrender  and  discharge. 

C  D, 
Collector  of  Taxes  for  the  of 


188 


Part  III. 

TAXATION  OF  CORPORATIONS. 


Tax  cpmmis- 
sioner,  ap- 
pointment, 
etc.,  salary. 
1865,  283,  §  U 
1870, 224,  §  61 
1876,  155. 
1879,  288,  §  1. 
P.  S.  13,  §  1. 
1887,  342,  §  1. 
1890,  160,  §  1. 
R.  L.  14,  §  1. 
1907,  564,  §  1. 


Deputy,  assist- 
ants, clerks 
and  their 
salaries. 
1876,  155. 
1879,  288,  §  2. 
1881,  175. 
P.  S.  11,  §97; 
13   §  2 

1887,  342,  §  2. 
1891,  342. 
1898,  507,  §  3. 
1901,449. 
R.  L.  14,  §  2. 
1904,  99. 

1906,  322. 

1907,  564,  §  2. 


Annual  report. 


1873,  321, 

1874,  227, 

1881,  284, 
P.  S. 13,  § 

1882,  217, 
1894,  484. 
R  L.  14,  § 


TAX    COMMISSIONER. 

Section  1.  There  shall  be  a  tax  commissioner  ap- 
pointed by  the  governor,  with  the  advice  and  consent  of 
the  council,  who  shall  also  be  the  commissioner  of  corpora- 
tions, and  who  shall  hold  his  office  for  three  years  from  the 
date  of  his  commission  unless  sooner  removed  by  the  gov- 
ernor. He  shall  receive  in  full  compensation  for  the 
duties  of  both  offices  an  annual  salary  of  five  thousand 
dollars. 

Section  2.  The  commissioner  may  with  the  advice  and 
consent  of  the  governor  and  council  appoint,  and  with  their 
consent  remove,  a  deputy  commissioner  to  assist  him  in  his 
duties  who  shall  receive  an  annual  salary  of  three  thousand 
dollars.  In  case  of  a  vacancy  in  the  office  of  commissioner 
or  during  the  absence  or  disability  of  that  officer,  the  deputy 
commissioner  shall  perform  the  duties  of  the  office,  and 
service  of  process  made  on  him  shall  be  of  the  same  force 
and  effect  as  if  made  on  the  commissioner.  The  commis- 
sioner may  also  with  the  advice  and  consent  of  the  governor 
and  council  appoint,  and  with  their  consent  remove,  three 
assistants  at  salaries  to  be  approved  by  the  governor  and 
council.  The  commissioner  may  also  appoint  two  perma- 
nent clerks,  the  first  at  a  salary  of  two  thousand  dollars  a 
year  and  the  second  at  a  salary  of  fifteen  hundred  dollars 
a  year,  and  may  procure  such  additional  clerical  and  other 
assistance  as  may  be  necessary.  He  may  also  appoint  from 
time  to  time  such  appraisers  as  may  he  necessary  to  ap- 
praise property  subject  to  the  inheritance  tax,  who  shall 
receive  such  compensation  for  their  services  as  he  may  fix. 

Section  3.  He  shall  annually  in  January  report  to  the 
general  court  the  transactions  of  his  office  for  the  preced- 
ing year.  This  report  shall  include  tabular  statements  of 
the  amounts  of  exempted  property  returned  under  the  pro- 
visions of  section  ninety-five  of  Part  I.  and  of  ships  en- 
gaged in  the  foreign  carrying  trade.     He  shall  also  sub- 


189 

mit  therewith  an  abstract  of  such  particulars  from  the  lists 
of  property  held  for  literary,  benevolent,  charitable  or  sci- 
entific piirposes  as  he  shall  deem  for  the  public  interest. 

Section  4.     He  shall  annually,  on  or  before  the  first  JjJeJX""'" 
day  of  May,  forward  to  the  assessors  of  every  city  and  Jj™^^^/jf^^ 
town  a  list  of  all  corporations  organized  under  the  laws  corporations, 
of  this  commonwealth,  known  to  him  to  be  liable  on  said  i87o!  144,' §  i! 
first  day  of  May  to  taxation  on  their  corporate  franchises  §§  si  4^' 
or  property,  and  as  soon  as  may  be  thereafter  copies  of  the  fgoQ]  lihti- 
list  furnished  by  such  corporation  under  the  provisions  of 
section  six,   and  with  such  other  information  as  in  his 
judgment  will  assist  them  in  the  assessment  of  taxes. 

Sectioi^  5.     He.  or  his  deputy  may  visit  any  city  or  Supervision  of 
town,  inspect  the  work  of  its  assessors  .and  give  to  them  i898, 507,  §  3. 
such  information  and  require  of  them  such  action  as  will     "    " 
tend  to  produce  uniformity  in  valuation  and  assessments 
throughout  the  commonwealth.      He  or  his  deputy  may 
cause  an  assessor  who  violates  any  of  the  laws  relative  to 
the  assessment  of  taxes  for  which  a  penalty  is  imposed  to 
be  prosecuted,  either  in  the  county  in  which  said  officer 
resides  or  in  an  adjoining  county.     He  or  his  deputy  may 
appear  before  the  superior  court  or  any  board  of  county 
commissioners  sitting  for  the  abatement  of  taxes.     He  and 
his  deputy  shall  be  allowed  their  reasonable  travelling  ex- 
penses incurred  under  the  provisions  of  this  section. 

Sectioi^  6.    Every  corporation  organized  under  the  laws  corporations 
of  this  commonwealth,  which  on  the  first  day  of  May  in  of  ™ockS*"™ 
any  year  holds,  as  collateral  security,  bonds  of  any  descrip-  couSera/^  ^ 
tion  or  shares  of  stock  in  corporations  not  liable  to  taxa-  i^  s!'iy,^§  l."^' 
tion  on  their  corporate  franchises  or  stock  under  the  pro-  ^-  ^- 1^*  §  ^^ 
visions  of  this  act,  shall  annually,  between  the  first  and 
tenth  days  of  May,  return  to  the  tax  commissioner  the 
whole  number  of  such  shares  and  bonds  so  held,  the  names 
and  residences  of  the  persons  pledging  the  same,  and  the 
descriptive  number,  denomination,  and  the  par  and  mar- 
ket value,  if  kno^vn,  of  the  shares  and  bonds  pledged  by 
each. 

Section  7.     A  corporation  neglecting  or  refusing  to  Penalty  for 
make  the  returns  required  by  the  preceding  section,  or  wil-  mfkS^retSm. 
fully  making  a  return  which  is  materially  false  or  defect-  ^.^s.'ii^l  1.^* 
ive,  shall  forfeit  for  each  offence  not  less  than  fifty  nor  ^-  ^-  ^^'  §  ^• 
more  than  one  thousand  dollars,  to  the  use  of  the  city  or 
tovm  in  which  the  person  pledging  such  stock  or  bonds 
resides. 


190 

SJSutor°!'ad-        Sectiois^  8.    A  guardian  who  holds,  or  whose  ward  holds, 
ministrators,      shares  of  stock  in  any  corporation,  including  hanks  located 

trustees  and         .  i   i      t    i  i  •  '  ^ 

partnerships  to  m  the  Commonwealth  liable  to  taxation,  and  an  executor, 
of  stock  held,  administrator,  trustee  or  other  person  who  holds  in  trust 
1865;  283!  §§2,  auj  such  stock,  shall  annually,  between  the  first  and  tenth 
1873, 315,  §  15.  days  of  May,  return  under  oath  to  said  commissioner  the 
R.L.\4,^§8.  names  and  residences,  on  the  first  day  of  that  month,  of 
*  themselves  and  of  all  such  wards  or  other  persons  to  whom 

any  portion  of  the  income  from  such  stock  is  payable,  the 
number  of  shares  of  stock  so  held  and  the  name  and  loca- 
tion of  the  corporation. 

A  partnership  shall  annually,  between  the  first  and  tenth 
days  of  May,  make  a  like  return,  stating  the  amount  of 
such  stock  owned  by  the  firm,  the  names  and  residences  of 
all  the  partners  and  the  proportional  interest  or  ownership 
of  each  partner  in  said  stock. 


SALARIES    AND    EXPENSES. 

^is'Tnd^electric       Section  9.     All  sums  of  mouey  annually  appropriated 
light  commis-     by  the  general  court  for  the  salaries  and  expenses  of  the 
1864, 152, 1  7.    board  of  railroad  commissioners  and  of  the  board  of  gas 
1874!  372,'  §  18.  and   electric   light   commissioners,   their   clerks   and   em- 
p.  s.' 112,' §12.  ployees,    shall   be   apportioned   by   the   tax  commissioner 
ill?;  334,' 1 4;"    among  the  several  railroad  corporations  and  street  railway 
ilio.^^do,  §  3.    companies  and  among  the  several  gas  and  electric  light 
ligi'  535'  §  8     companies,  respectively ;  and  on  or  before  the  first  day  of 
1895.' 313;         July  in  each  year  he  shall  assess  upon  each  of  said  cor- 
1897, 376,  §4.-  poratious  and  companies  its  share  of  said  sums,  in  the  case 
R.  L.'iii"§  10;  of  railroad  corporations  and  street  railway  companies  in 
1904. 429;         proportion  to  its  gross  earnings  from  the  transportation  of 
1906,^463,         persons  and  property  for  the  year  last  preceding  the  year 
Part  I.,  §  3.      jj^  which  the  assessment  is  made,  and  in  the  case  of  gas  and 
electric  light  companies  in  proportion  to  its  gross  earnings 
for  the  year  last  preceding  the  year  in  which  the  assess- 
ment is  made;  and  such  assessments  shall  be  collected  in 
the  same  manner  as  taxes  upon  corporations. 


TAXATION  OE  VESSELS  ENGAGED  IN  THE  FOREIGN  CARRYING 

TRADE. 

Excise  tax,  Section  10.     The  tax  commissioner  shall  assess  annu- 

re  turns.  .  ,        . 

RL.i2§§7-9.  ally  as  of  the  first  day  of  May  an  excise  tax  upon  the  m- 
§§  i.*2;  375.      terest  of  every  corporation  organized  under  the  laws  of 


191 

this  commonwealth  and  having  a  place  of  business  therein, 
in  any  ship  or  vessel  which  has,  during  the  period  of  its 
business  in  the  year  preceding  said  first  day  of  May,  been 
engaged  in  the  foreign  carrying  trade,  which  tax  shall  be 
one  third  of  one  per  cent  upon  the  value  of  such  interest 
as  it  shall  be  determined  by  him.  Such  tax  shall  become 
due  and  shall  be  collected  at  the  same  time  and  in  the  same 
manner  as  other  taxes  assessed  to  such  corporations.  The 
president  and  treasurer  of  every  such  corporation  owning 
an  interest  in  any  such  ship  or  vessel  shall  annually,  within 
thirty  days  after  the  first  day  of  May,  make  a  return  to  the 
tax  commissioner,  under  oath,  setting  forth  in  detail  the 
name  of  the  ship  or  vessel,  the  interest  of  the  corporation 
therein,  and  the  value  of  such  interest.  If  the  tax  com-, 
missioner  is  satisfied  of  the  truth  of  the  return  he  shall 
deduct  said  value  from  the  fair  cash  value  of  the  shares  of 
the  corporation  as  estimated  by  him  for  the  purpose  of  de- 
termining the  true  value  of  its  corporate  franchise  under 
the  provisions  of  this  part. 

TAXATION"  OF  BANK  SHAEES. 

Section  11.     All  the  shares  of  stock  in  banks,  whether  Taxation  of 
of  issue  or  not,  existing  by  authority  of  the  United  States  1868,349,  §"i. 

15271     "^On    X   1 

or  of  the  commonwealth,  and  located  within  the  common-  1872,'  321" 
wealth,  shall  be  assessed  to  the  owner  thereof  in  the  city  or  187^3,^315,  §  1. 
towji  in  which  such  bank  is  located,  and  not  elsewhere,  in  r.l.m.^I^q. 
the  assessment  of  state,  county  and  town  taxes,  whether  li^i^^'ui' 
such  owner  is  a  resident  of  said  city  or  town  or  not.    They  }oi  Maas.  575. 
shall  be  assessed  at  their  fair  cash  value  on  the  first  day  112  Mass.' 334! 
of  May,  first  deducting  therefrom  the  proportionate  part  135  Mass!  569! 
of  the  value  of  the  real  estate  belonging  to  the  bank,  at  the  ill  M^l!  313! 
same  rate  as  other  moneyed  capital  in  the  hands  of  citizens  3  wSce,^5l5. 
is  by  law  assessed.     The  persons  who  appear  from  the  LYuIT^.^^" 
books  of  the  banks  to  be  owners  of  shares  at  the  close  of 
the  business  day  last  preceding  the  first  day  of  May  shall 
be'  deemed  to  be  the  owners  thereof. 

Section  12.     Every  such  bank  shall  pay  the  tax  so  as-  Payment  of 
sessed  to  the  collector  or  other  person  authorized  to  receive  JSJreo^^''"''^'^^ 
the  same  at  the  time  when  other  taxes  in  the  city  or  town  rs^'i^s;^^!^' 
become  due.    If  not  so  paid,  said  tax,  with  interest  thereon  fgg^Mifs  ^529 
at  the  rate  of  twelve  per  cent  per  annum  from  the  day  }|^  Mass.  110! 
when  it  became  due,  may  be  recovered  from  said  bank  in 
an  action  of  contract  by  the  collector  of  such  city  or  town. 


192 


Lien  on  shares 
for  payment 
of  taxes. 
1868,  349,  §  2. 

1871,  390,  §  2. 

1872,  321,  §  9. 

1873,  315,  §  3. 
P.  S.  13,  §  10. 
R.  L.  14,  §  11. 
138  Mass.  529. 
125  U.  S.  60. 
Statement  to 
assessors  of 
names,  etc.,  of 
shareholders. 
1871,  390.  §  5. 
1872,321,  §§  1, 
2,  10. 

1873,  315,  §  5. 
P.  S.  13,  §  11. 
R.  L.  14,  §  12. 
138  Maas.  529. 
155  Mass.  313. 


Determination 
of  amount  of 
offsets  and 
credits;  notice; 
appeal. 
1871,390, 
§§  6-8. 
1873,  315, 
§§  6-8. 
P.  S.  13, 
§§  12-14. 
R.  L.  14,  §  13. 
135  Mass.  569. 
138  Mass.  529. 


Certification 
of  aggregate 
charges  and 
credits. 
1871,  390, §  c 


Section  13.  The  shares  of  such  banks  shall  be  sub- 
ject to  the  tax  paid  thereon  bv  the  corporation  or  by  the 
officers  thereof,  and  the  corporation  and  the  officers  thereof 
shall  have  a  lien  on  all  the  shares  in  such  bank  and  on  all 
the  rights  and  property  of  the  shareholders  in  the  corpo- 
rate property  for  the  payment  of  said  taxes. 

Section  14.  The  cashier  of  every  such  bank  shall  make 
and  deliver  to  the  assessors  of  the  city  or  towQ  in  which  it 
is  located,  on  or  before  the  tenth  day  of  May  in  each  year, 
a  statement  under  oath  showing  the  name  of  each  share- 
holder, with  his  residence  and  the  number  of  shares  be- 
longing to  him  at  the  close  of  the  business  day  last  preced- 
ing the  first  day  of  May,  as  the  same  then  appeared  on  the 
books  of  said  bank.  If  the  cashier  fails  to  make  such 
statement,  said  assessors  shall  forthwith  obtain  a  list  of 
the  names  and  residences  of  shareholders  and  of  the  num- 
ber of  shares  belonging  to  each.  They  shall,  forthwith, 
upon  obtaining  such  statement  or  list,  transmit  a  copy 
thereof  to  the  tax  commissioner;  and  shall,  immediately 
upon  the  ascertainment  of  the  rate  per  cent  upon  the  valua- 
tion of  the  total  tax  in  such  city  or  town  for  the  year,  give 
to  said  commissioner  written  notice  thereof,  and  also  of 
the  amount  assessed  by  them  upon  the  shares  of  each  bank 
located  therein. 

Section  15.  Said  commissioner  shall  thereupon  deter- 
mine the  amount  of  the  tax  assessed  upon  shares  in  each 
of  said  banks  which  would  not  be  liable  to  taxation  in  said 
city  or  town  according  to  the  provisions  of  Part  I. ;  and  such 
amount  shall  be  a  charge  against  said  city  or  town.  He 
shall,  in  like  manner,  determine  the  amount  of  tax  so  as- 
sessed upon  shares  which  would  be  so  liable  to  taxation  in 
each  city  or  town  other  than  that  in  which  the  bank  is  lo- 
cated; and  such  amount  shall  be  a  credit  to  such  city  or 
town.  He  shall  forthwith  give  notice  in  writing  by  mail  or 
at  their  office  to  the  assessors  of  each  city  or  town  thereby 
affected  of  the  aggregate  amount  so  charged  against  and 
credited  to  it;  and  they  may  within  ten  days  after  notice 
of  such  determination  appeal  therefrom  to  the  board  of 
appeal  constituted  under  the  jorovisions  of  section  sixty- 
eight. 

Section  16.  He  shall,  at  the  expiration  of  ten  days 
after  said  notice  or  upon  being  informed  of  the  decision  of 
the  board  of  appeal,  if  an  appeal  is  taken,  certify  to  the 


193 

treasurer   and  receiver  general  the   aggregate  amount  of  p^  g^'fg^^*  |^' 
charges  aorainst,  and  credits  to,  each  city  or  town,  as  so  '^■J^^M'  Kii- 

o     .      *  \  '  y  '138  Mass.  529. 

determined;  and  the  treasurer  and  receiver  general  shall 
thereupon  withhold  out  of  any  sums  payable  by  the  com- 
monwealth to  any  city  or  town  against  which  a  charge  is 
certified,  or  shall  allow  or  pay  over  to  each  city  or  town 
to  which  a  credit  is  certified,  as  the  case  may  be,  the 
amount  so  certified. 

Section  17.   In  such  adjustment  of  charges  and  credits,  Allowance  for 
one  per  cent  upon  the  amount  assessed  and  collected  shall  SiSsmentand 
be  allowed  for  the  expense  of  assessment  and  collection.  i873?3i5' 
'No  city  or  town  shall  in  any  year  be  entitled  to  an  allow-  ^  s^isf  §  le. 
ance  of  credits  or  payments  under  the  provisions  of  this  j35M^g^569 
part  until  the  assessors  have  complied  with  the  require-  i38  Mass.  530. 
ments  thereof  and  with  section  thirty-six  of  Part  I.,  rela- 
tive to  the  taxation  of  bank  shares.     No  bank,  the  shares 
in  which  are  liable  to  taxation  by  section  eleven,  shall  be 
liable  thereto  under  the  provisions  of  section  forty-three, 
nor  shall  the  shareholders  be  liable  to  taxation  for  their 
shares  therein  for  any  purpose,  except  under  the  provisions 
of  this  part. 

Section  18.     The  amount  actually  paid  into  the  treas-  Deduction  of 
ury  of  the  commonwealth  annually,  under  the  provisions  paid  by  sav- 
of   this   part,   on   account  of   shares   in  banks,   which   on  SSfurance  com- 
the  first  day  of  May  are  the   absolute  property  of  any  1873^315,  §  12. 
savings  bank  or  institution  for  savings  liable  to  taxation  p^l^'il^f  17^" 
under  the  provisions  of  section  twenty-one,  or  of  any  insur-  ^-  ^- 1^-  §  ^^■ 
ance  company  liable  to  taxation  under  the  provisions  of 
section  forty-three,  shall  be  deducted  from  the  taxes  of  such 
savings  bank  or  insurance  company  at  the  next  payment 
by  them  to  the  commonwealth  after  the  collection  of  the 
taxes  on  such  bank  shares.     The  tax  commissioner  may 
require  a  statement  of  all  shares  so  owned  by  any  savings 
bank,  institution  for  savings  or  insurance  company,  in  a 
form  approved  by  him  and  signed  and  sworn  to  by  the 
treasurer  or  like  financial  officer  thereof.     He  shall,  from 
such  statement  and  other  evidence  and  subject  to  appeal 
by  such  corporation,  as  herein  provided  in  similar  cases, 
determine  the  amounts  to  be  deducted,   and  certify  the 
same  to  the  treasurer  and  receiver  general  upon  the  final 
determination  thereof;    but  the  amount  so  to  be  deducted 
from  the  tax  payable  by  any  savings  bank  or  institution 
for  savings  shall  not,  in  any  year,  exceed  the  amount  of 


194 


Certification  of 
bank  taxes 
assessed  and 
collected. 
1873,  315,  §  13. 
P.  S.  13.  §  18. 
R.  L.  14,  §  17. 
1906,  271,  §  2. 
135  Mass.  569. 


Reimburse- 
ment of  ex- 
empted share- 
holder. 

1872,  321,  §  12. 

1873,  315,  §  14. 
P.  S.  13,  §  19. 
R.  L.  14.  §  18. 


the  tax  assessed  on  account  of  that  portion  of  its  deposits 
invested  in  shares  in  banks. 

Section  19.  The  tax  commissioner  shall  annually,  as 
soon  as  may  be  after  the  first  Monday  in  November,  cer- 
tify to  the  treasurer  and  receiver  general  the  amounts 
assessed  and  collected  for  that  year  in  respect  of  shares 
in  such  banks  or  other  corporations  owned  absolutely  by 
any  society,  district  or'  institution  of  the  classes  specified 
in  clauses  three  and  four  of  section  five  of  Part  I.,  and  the 
treasurer  and  receiver  general  shall  thereupon  pay  over 
such  amounts  to  such  society,  district  or  institution  own- 
ing such  shares. 

Section  20.  The  assessors  of  a  city  or  town,  upon 
request  of  any  person  resident  therein  who  is  the  owner 
of  any  shares  in  such  banks  or  other  corporations  which, 
under  the  provisions  of  clauses  nine  and  ten  of  section 
five  of  Part  I.,  would  be  entitled  to  exemption  from  taxa- 
tion, shall  give  to  him  a  certificate  stating  such  fact;  and 
the  treasurer  of  such  city  or  town,  upon  request  therefor, 
and  the  deposit  with  him  of  such  certificate,  shall  pay  over 
to  such  owner  the  amount  so  collected  in  respect  of  such 
shares,  immediately  upon  the  allowance  made  to  such  city 
or  town  under  the  provisions  of  this  part. 


Taxation  of 
deposits  in 
savings  banks. 

1862,  224, 
§§  4.  5. 

1863,  164. 
1865.  267. 
1868,  315. 
1879,  115. 
1881,  304,  §§  8 
9;  305.  §  1. 

P.  S.  13,  §  20. 
1890,  160,  §  4. 
R.  L.  14,  §  19. 

1906,  271,  §  3. 

1907.  246. 

5  Allen,  428. 
12  Allen,  312. 
123  Mass.  493. 
126  Mass.  526. 
149  Mass.  4. 
151  Mass.  103. 

6  Wallace,  611 
178  U.  S.  120. 


TAXATION    or    SAVINGS    BANKS. 

Section  21.  Every  savings  bank  and  institution  for 
savings  shall  pay  to  the  treasurer  and  receiver  general,  on 
account  of  its  depositors,  an  annual  tax  of  one-half  of  one 
per  cent  on  the  amount  of  its  deposits,  one-half  thereof  to 
be  assessed  by  the  tax  commissioner  upon  the  average 
amount  of  such  deposits  for  the  six  months  preceding  the 
first  day  of  May  and  one-half  to  be  so  assessed  upon  the 
average  amount  of  such  deposits  for  the  six  months  pre- 
ceding the  first  day  of  November.  Such  tax  shall  be  paid 
semi-annually  on  or  before  the  twenty-fifth  day  of  May 
and  of  November,  each  payment  to  consist  of  the  amount 
of  the  tax  as  determined  by  the  last  preceding  assessment ; 
but  so  much  of  said  deposits  as  is  invested  in  real  estate 
for  banking  purposes  or  in  loans  secured  by  mortgages  of 
taxable  real  estate,  and,  for  the  period  limited  in  clause 
nine  of  section  twenty-six  of  chapter  one  hundred  and 
thirteen  of  the  Revised  Laws,  so  much  of  said  deposits  as 


195 

is  invested  in  real  estate  the  title  to  which  has  been 
acquired  by  the  completion  of  foreclosure,  or  by  purchase, 
pursuant  to  said  section,  and  so  much  of  said  deposits  as 
is  invested  in  bonds  of  the  commonwealth  of  Massachu- 
setts issued  after  July  first,  nineteen  hundred  and  six, 
shall  be  exempt  from  taxation  under  the  provisions  of  this 
section. 

Section   22.     Every  savings  bank  and  institution  for  Semi-annuai 
savings  shall  semi-annually,  on  or  before  the  tenth  day  tents. 
of  May  and  of  ]L^ovember,  make  a  return  to  the  tax  com-  §§8/9. 
missioner,  signed  and  sworn  to  by  its  president  and  treas-  isgd,  leo;  §  4. 
urer,  of  the  amount  of  its  deposits  on  the  first  day  of  said  f^-  27if m! 
May  and  TsTovember,   and  of  the  average  amount  of  its  123  Mass.  497. 
deposits  for  the  six  months  preceding  each  of  said  days. 
Every  such  corporation  which  neglects  to  make  such  re- 
turn shall  forfeit  fifty  dollars  for  each  day  during  which 
such  neglect  continues.     If  it  wilfully  makes  a  false  state- 
ment in  such  return  it  shall  be  punished  by  a  fine  of  not 
less  than  ^ve  hundred  nor  more  than  five  thousand  dollars. 

Section  23.     All  deposits  taxed  under  the  provisions  Deposits  taxed 
of  section  twenty-one  shall  be  otherwise  exempt  from  taxa-  wealth  other- 
tion  in  any  year  in  which  said  tax  is  paid.  7862r224!'§*i2. 

1864,  208.  §  15.  R.  L.  14,  §  21  100  Mass.  184.  151  Mass.  103. 

P.  8.  13,  §  23.  5  Allen.  435.  123  Mass.  496.  ^  ^ 

Section  24.     The  Massachusetts  Hospital  Life  Insur-  Taxation  of 
ance  Company  shall  annually,  on  or  before  the  tenth  day  setts  Hospital 

cur  T    -\T  1  1  J.  'JJ  Life  Insurance 

of  May  and  I^ovember,  make  a  return,  signed  and  sworn  company, 
to  by  a  majority  of  its  board  of  directors,   of  the  full  1^62, 224,  §§  3, 
amount  of  all  money  and  property,  in  detail,  in  its  posses-  Jiff;  30I;  1 1^' 
sion  or  charge  as  deposits,  trust  funds  or  for  purposes  of  r.  1/14,^22. 
investment,  and  shall  pay  upon  all  the  same,  except  upon  J|i^j;i2g^'|o3 
deposits  invested  in  loans  secured  by  mortgages  of  taxable 
real  estate,  the  same  rate  of  tax  imposed  upon  savings 
banks  on  account  of  deposits.     If  said  corporation  neglects 
to  make  such  return,  it  shall  forfeit  fifty  dollars  for  each 
day  such  neglect  continues;    and  if  it  wilfully  makes  a 
false  statement  in  any  such  return,  it  shall  be  punished 
by  a  fine  of  not  less  than  five  hundred  nor  more  than  five 
thous9,nd  dollars. 

TAXATION    OF    CO-OPERATIVE    BANKS. 

Section  25.      The  capital  stock,  corporate  franchises  —  of  co-opera- 

1  ,,  «  tive  banks. 

and   personal   property,   but   not   the   real   estate,    of  co-  1890. 63. 
operative  banks  shall  be  exempt  from  taxation. 


196 


Taxation  of 
life  insurance 
companies. 

1880.  227, 
§§  1,  2. 

1881,  219. 

P.  S.  13,  §§  25, 

26. 

1887,  283,  §  1. 

R.  L.  14,  §  24. 

1903,  307. 

133  Mass.  161. 


What  persons 
and  corpora- 
tions are  to  be 
deemed  resi- 
dents. 

1880,  227,  §  3. 
P.  S.  13,  §  27. 
R.  L.  14,  §  25. 


Taxation  of 
domestic  fire, 
marine  and 
other  insur- 
ance com- 
panies. 
1862,  224, 
§§  1.  6. 

1872,  245. 

1873,  141, 
P.  S.  13,  § 
1884,  180,  §  5. 
1894,  522,  §  64. 
R.  L.  14,  §  26. 


§  I. 
29. 


TAXATIOJ!T   OF  INSURANCE   COMPANIES. 

Section  26.  A  domestic  or  foreign  company  or  asso- 
ciation, which  is  engaged,  by  its  officers  or  by  agents  as 
defined  in  chapter  five  hundred  and  seventy-six  of  the  acts 
of  the  year  nineteen  hundred  and  seven,  in  the  business  of 
life  insurance  within  tjiis  commonwealth  shall  annually, 
on  or  before  the  tenth  day  of  May,  make  a  return  to  the 
tax  commissioner,  signed  and  sworn  to  by  its  president 
and  secretary,  giving  the  number,  date  and  class  of  the 
policies  so  held,  the  age  of  the  assured  life  and  the  aggre- 
gate 'net  value  of  each  group  requiring  a  separate  compu- 
tation to  determine  their  net  value  and  the  combined 
aggregate,  and  shall  annually  pay  an  excise  tax  of  one 
quarter  of  one  per  cent  upon  the  net  value  of  all  policies 
in  force  on  the  preceding  thirty-first  day  of  December, 
issued  or  assumed  by  such  company  and  held  by  residents 
of  the  commonwealth,  as  determined  by  the  tax  commis- 
sioner upon  such  return  and  such  other  evidence  as  he  may 
obtain.  After  the  first  return  has  been  made  under  this 
section  each  subsequent  return  shall  contain  all  the  fore- 
going particulars  relating  to  new  policies  issued  or  as- 
sumed by  the  company  since  the  last  return,  and  the  num- 
bers and  new  values  of  all  policies  required  to  be  included 
in  the  year  for  which  the  return  is  made,  and  such  other 
particulars  as  the  tax  commissioner  shall  require. 

Section  27.  For  the  pur]X)se  of  the  preceding  section 
all  persons  or  corporations  shall  be  deemed  residents  of 
the  commonwealth  who,  under  the  provisions  of  Part  I., 
are  made  liable  to  taxation  on  account  of  personal  property 
o^vned  or  held  by  or  for  them  in  trust,  pledge,  or  other- 
wise, other  than  that  mentioned  in  clause  one,  two  and 
three  of  section  twenty-three  of  Part  I. 

Section  28.  A  domestic  fire,  marine,  fire  and  marine, 
real  estate  title  and  other  insurance  company,  except  life 
insurance  companies  and  except  companies  liable  to  taxa- 
tion on  their  corporate  franchise  under  the  provisions  of 
this  part,  shall  annually  pay  a  tax  or  excise  of  one  per 
cent  on  all  premiums  received  for  insurance  during  the 
preceding  year  whether  in  cash  or  in  notes  absolutely  pay- 
able, and  one  per  cent  on  all  assessments  made  by  such 
company  upon  policy-holders;  but  premiums  received  in, 
other  states  where  they  are  subject  to  a  like  tax  shall  not 
be  so  assessed. 


197 

SECTioisr  29.    A  fire, .marine,  fire  and  marine  and  other  Taxation  of 

.     ^  .  .  1  .  .       ,      , .  like  com- 

msurance  company,  association  or  partnership,  incmdmg  panics  incor- 
associations    formed    npon    the    plan    known    as    Lloyds,  SthtJ%a?es. 
incorporated    or    associated    by    authority    of    any    other  Jlfl;  f|f ;  1 1; 
state  of  the  United  States,  shall  annually  pay  a  tax  or  p^g^/fa^Ho^; 
excise  upon  all  premiums  charged  or  received  on  contracts  ^q^m^^^sIi" 
made  in  this  commonwealth  for  the  insurance  of  property 
or  interests   therein,   or   received  or   collected  by   agents 
in  this  commonwealth,  at  the  rate  of  two  per  cent,  and 
at   such   greater  rate,   if   any,   as   shall   be   equal   to  the 
highest  rate  imposed  during  the  year  by  the  laws  of  such 
other  state  upon  insurance  companies  incorporated  by  au- 
thority of  this  commonwealth,  or  upon  their  agents,  when 
doing  business  in  such  state. 

Sectiot^  30.     A  life  insurance  company,  association  or  — o^i'^e 

,..  ,  'ii  !•  c    insurance 

partnership,   incorporated   or   associated  by  authority  of  companies  in- 

corporated. 

any  other  state  of  the  United  States,  by  the  laws  of  which  in  states  im- 
a  tax  is  imposed  upon  the  premium  receipts  of  life  insur-  Sn^iSf  com-^ 
ance  companies  chartered  by  this  commonwealth  and  doing  staTe^dCing^^ 
business   in  such   state,   or  upon  their  agents,   shall   an-  Sl^lJeS.^ 
nually,  so  long  as  such  laws  continue  in  force,  pay  a  tax  j?  s^'i3*^§  |i^" 
or   excise   upon   all   premiums  charged   or  received   upon  ^-  ^- 1^,  §  28, 
contracts   made   in  this   commonwealth,    at  a   rate   equal 
to  the  highest  rate  so  imposed  during  the  year. 

Section  31.     Every  fire,  marine,  fire  and  marine,  and  marine'^and 

,1  •  ^  •     ,  •  J.  1  •  •         other  com- 

other  insurance  company,   association  or  partnership,  m-  paniesincor- 
cluding    associations    formed    upon    the    plan    knov^m    as  FoTeUn^go?- 
Lloyds,  incorporated  or  associated  under  the  laws  of  any  i872^®22l". 
government  or  state  other  than  one  of  the  United  States,  f|73^f4i  §4 
shall  annually  pay  a  tax  of  four  per  cent  upon  all  pre-  p^^g'fo^^L^- 
miums  charged  on  contracts  made  in  this  commonwealth  R.  l.  14,  §  29. 

J,  .  ^  n      ^     1     1  ^        •         ^1  •  100  Mass.  531. 

lor  insurance,  or  collected  by  agents  m  this  common- 
wealth :  provided,  that  when  the  tax  commissioner  is 
satisfied  that  any  such  company  has,  during  the  whole 
term  for  which  the  tax  is^  to  be  assessed,  kept  on  deposit 
with  the  insurance  or  other  department  of  any  state  of 
the  United  States,  or  in  the  hands  of  trustees,  resident 
in  and  citizens  of  such  states,  for  the  general  benefit  and 
security  of  all  policy-holders  residing  in  the  United  States, 
securities  approved  by  the  insurance  commissioner  of  the 
value  of  two  hundred  thousand  dollars,  which  have  been 
at  all  times  available  for  the  payment  of  losses  in  this 
commonwealth,  the  tax  upon  the  premiums  of  such  com- 
pany shall  be  assessed  at  the  rate  of  two  per  cent.     The 


198 

certificate  of  the  insurance  commissioner  may  be  received 

by  the  tax  commissioner  as  sufficient  evidence  that  such 

securities  have  been  so  deposited. 

of^fore'ign  Section  32.      Every  foreign  insurance  company  sub- 

iTy'and  guar-'  j^^^  *^  *^®  provisious  of  chapter  five  hundred  and  seventy- 

anty  insurance  g[x  of  the  acts  of  the  vcar  nineteen  hundred  and  seven, 

companies.  ,.,,.*'^.  .  .  ., 

1890, 197,  §  1.    engaged  m  the  business  oi   insuring  against  accident  to 

the   person,    of   insuring   employers   against   liability   for 

accidents  to  employees,  of  acting  as  surety  upon  bonds  or 

of  guaranteeing  the   fidelity  of  employees  shall  pay   an 

annual  tax  or  excise  of  two  per  cent  upon  all  premiums 

charged  or  received  on  contracts  of  insurance  or  guaranty 

made  in  this  commonwealth,  or  received  or  collected  by 

agents  therein. 

i8^68"*i6T^§  1         Section  33.    In  determining  the  amount  of  the  tax  pay- 

1873;  i4i'  §  6.    able  under  the  five  preceding  sections,  all  unused  balances 

1888, 154.V    '    on  notes  taken  for  premiums  on  open  policies,  all  sums 

1890   197   52.  .  .. 

1892;  129!     "    paid  for  return  premiums  on  cancelled  policies,  and  all 
1898;  537;  §  2.  ■  sums   actually   paid   either   to   other    domestic   insurance 
R.  L.  14,  §  31.    companies  or  to  the  agents  of  foreign  companies  for  re- 
insurance on  risks,  the  premium  on  which,  but  for  such 
re-insurance,  would  be  liable  to  taxation,  shall,  in  each 
case,  be  deducted  from  the  full  amount  of  premiums  and 
assessments;  but  no  deduction  shall  be  allowed  of  sums 
paid  for  re-insurance  effected  otherwise  than  by  licensed 
resident  agents  nor  shall  dividends  in  scrip  or  otherwise 
in  stock,   mutual  or  mixed   companies  be   considered   as 
return  premiums. 
^mn'Te^om-'        Section  34.     Evcry  compauy  liable  to  taxation  under 
1873^^141     7    ^^^  provisions  of  sections  twenty-eight  and  thirty-two  shall 
1878;  218;  §  3.    annually,  between  the  first  and  fifteenth  days  of  October, 
1887,  283.  §  2.    mako  a  return  to  the  tax  commissioner,  signed  and  sworn 
1892;  129!     ■    to  by  its  secretary  or  other  officer  having  knowledge  of  the 
1906;  271,^^6;    facts,  stating  the  amount  insured  by  said  company,  and 
the  premiums  received  and  assessments  collected  by  it  dur- 
ing the  year   ending  on  the  preceding  thirtieth   day  of 
September.     Every  foreign  company,  association  or  part- 
nership,   including    associations    formed    upon    the    plan 
known  as  Lloyds,  authorized  to  do  business  in  the  common- 
wealth, shall  annually,  between  the  first  and  fifteenth  days 
of  October,  make  a  return  to  the  tax  commissioner,  in 
such  form  as  he  shall  prescribe,  signed  and  sworn  to  by 
its  secretary,  manager  or  other  officer  having  knowledge 


199 

of  the  facts,  of  the  amount  insured  by  it  upon  property 
or  interests  in  this  commonwealth,  and  the  premiums  and 
assessments  upon  such  insurance  charged  on  contracts 
made  by  it  or  its  agents  in  this  commonwealth  during  the 
year  ending  on  the  preceding  thirtieth  day  of  September. 
Such  returns  shall  state  the  whole  amount  of  premiums 
charged  by  or  in  behalf  of  said  company,  association  and 
partnership  either  in  cash  or  in  notes  absolutely  payable, 
the  amount  claimed  as  a  deduction  therefrom  under  any 
of  the  provisions  of  this  part,  and  also  the  classes  of  de- 
ductions and  the  amount  of  each  class. 

Sectioi^  35.       The  tax  commissioner,   from  such  re-  Assessment 
turns,   and  from  such  other  evidence  as  he  may  obtain,  ??mpanies.*° 
shall  assess  upon  such  companies,  associations  and  partner-  Jfyf;  2t8',  |  3! 
ships,  including  associations  formed  upon  the  plan  known  f8|)\|7^§2 
as  Lloyds,  and  their  agents,  the  taxes  imposed  by  sections  1^92, 129. 
twenty-eight  to  thirty-one,  inclusive,  and  shall  forthwith  i906, 271,  §  8. 
upon  making  such  assessment  give  notice  in  writing  to 
such   companies,    associations   and  partnerships,   or   their 
agents    in     the    commonwealth,     stating    the    respective 
amounts  payable  by  them.     Such  taxes  shall  be  paid  to 
the  treasurer  and  receiver  general  on  the  twentieth  day 
of  l^ovember  next  following  the  date  fixed  for  making  the 
returns.     The  tax  commissioner  shall  annually,  on  or  be- 
fore the  twentieth  day  of  ^N^ovember,  deliver  to  the  treas- 
urer and  receiver  general  a  certificate  stating  the  name 
of  every  such  company,  association,  partnership  and  agent 
upon  whom   such   tax   has   then  been   assessed,    and   the 
amount  assessed  upon  each,  and  a  like  certificate  of  such 
further  assessments  as  may  be  made  after  that  date.     All 
such  taxes,  whether  assessed  before  or  after  the  twentieth 
day  of  ^N'ovember,  shall  bear  interest  at  the  rate  of  twelve 
per  cent  per  annum  from  that  date  until  they  are  paid. 

Section    36.      Every    domestic    or    foreign    insurance  Recovery  of 
company,  association  or  partnership  shall  be  liable  for  the  jSJctfon.^^" 
full  amount  of  all  taxes  so  assessed  upon  it  or  its  agents  II7I;  218' |  3^* 
which,  with  interest  at  the  rate  of  twelve  per  cent  per  fgg^^  ^^^^  |^. 
annum,  may  be  recovered  in  an  action  of  contract  brought  i|9o!  197!  §  2. 
by  the  treasurer  and  receiver  general  in  the  name  of  the  R-  l!  14,  §  34. 
commonwealth.     It  shall  further  be  liable,  upon  an  infor- 
mation, to  an  injunction  restraining  it  and  its  agents  from 
the  further  prosecution  of  its  business  until  all  taxes  due 
with  costs  and  interest  are  fully  paid. 


200 


Returns  and 
taxation  of 
trust  com- 
panies. 
1888,  413, 
§§21,22. 
R.  L.  14,  §  35. 


Taxation  of 
trust  compa- 
nies, etc. 
P.  S.  13,  §  52. 
1888,  413, 
§§  21.  23. 
R.  L.  14,  §  36. 


Definitions. 


TAXATION    OF    TRUST    COMPANIES. 

Section  37.  Every  domestic  trust  company  incorpo- 
rated subsequent  to  the  twenty-eighth  day  of  May  in  the 
year  eighteen  hundred  and  eighty-eight  and  subject  to 
the  provisions  of  chapter  one  hundred  and  sixteen  of  the 
Revised  Laws,  shall  annually,  between  the  first  and  tenth 
days  of  May,  make  a  return  to  the  tax  commissioner, 
signed  and  sworn  to  by  some  officer  of  the  cor]wration,  of 
all  personal  property  held  upon  any  trust  on  the  first  day 
of  May  which  would  be  liable  to  taxation  if  held  by  any 
other  trustee  residing  in  this  commonwealth,  the  name  of 
each  city  and  toAvn  in  this  commonwealth  where  any  bene- 
ficiaries resided  on  said  day,  the  aggregate  amount  of  such 
property  then  held  for  all  the  beneficiaries  resident  in 
each  of  such  places,  and  also  the  aggregate  arnount  held 
for  beneficiaries  not  resident  in  this  commonwealth. 

It  shall  also,  at  the  same  time  and  in  like  manner,  make 
a  return  of  all  sums  deposited  with  it  on  interest  or  for 
investment,  other  than  those  held  in  trust  or  subject  to 
withdrawal  upon  demand  or  upon  not  more  than  ten 
days'  notice,  with  the  name  of  each  city  and  town  in 
this  commonwealth  in  which  any  beneficial  owners  resided 
on  said  first  day  of  May,  and  the  aggregate  amount  of 
such  deposits  then  held  for  the  benefit  of  persons  residing 
in  each  of  such  cities  and  towQs.  Such  company  shall 
annually  pay  to  the  treasurer  and  receiver  general  a  tax 
to  be  assessed  by  the  tax  commissioner  upon  the  total 
value  of  such  personal  property  held  in  trust  at  the  rate 
determined  by  him  under  the  provisions  of  section  forty- 
three,  and  to  be  so  assessed  upon  the  total  value  of  such 
deposits  so  held  on  interest  or  for  investment  at  three- 
fourths  of  such  rate. 

Section  38.  All  trust  companies  and  other  moneyed 
corporations  incorporated  in  the  commonwealth  shall  be 
subject  to  the  provisions  of  this  part  so  far  as  they  are 
not  inconsistent  with  the  provisions  of  their  special 
charters. 

TAXATION    OF    CORPORATE    FRANCinSES. 

Section  39.  The  term  "  domestic  business  corpora- 
tion "  as  used  in  this  act  shall  mean  every  corporation 
of  the  classes  enumerated  in  section  one  of  chapter  four 


201 

hundred  and  thirty-seven  of  the  acts  of  the  year  nineteen 
hundred  and  three ;  the  term  ''  foreign  corporation  '^ 
shall  mean  every  corporation,  association  or  organization 
of  the  classes  enumerated  in  section  fifty-eight  of  said 
chapter. 

Section   40.     Every  corporation   organized  under   the  Annual  returns 

1  •11  J?   J.1  lii      r*  to  tax  commis- 

general  or  special  laws  oi  the  commonwealth  lor  purposes  sioner. 
of  business  or  profit,  having  a  capital  stock  divided  into  §§^'3^.^^' 
shares,  except  banks,  whose  shares  are  otherwise  taxable  Jlfo;  n?;  §  2! 
under  the  provisions  of  this  part,  in  addition  to  all  re-  fgg^g  ^^^^  ^\ 
turns  required  by  its  charter,   and  in  addition  to  all  re-  Jiff-  270. 

1  .  .        ^  1  ..  i>       -i   '       1888,  413,  §  24. 

turns    otherwise    required   under    the   provisions    of   this  Jfl^vt^^- 
part,  shall  annuallv,  between  the  first  and  tenth  days  of  R.  l.  i4,  §  37. 

'  .      .  1902  342   5  "^ 

May,  make  a  return  to  the  tax  commissioner,  under  oath  1903]  437;  §  Is. 
of  its  treasurer,  stating  the  name  of  the  corporation,  its  Part' ii.f§  211, 
place  of  business,  and  setting  forth  as  of  the  first  day  of  ffe^^Y^'.^^^^' 
May  of  the  year  in  which  the  return  is  made :  —  98  u^S'It 

First,  The  total  authorized  amount  of  the  capital  stock  }|4M^gf^8- 
of  the  corporation;   the   amount   issued   and   outstanding  J57 JJ^^^- 70^- 
and  the  amount  then  paid  thereon ;  the  classes,  if  any,  into  i79  Mass!  15! 
which   it   is  divided ;  the  par  value  and  number  of  its  278.] " 
shares;  the  market  value  of  the  shares  of  its  stock,  or  of 
each  class  of  its  stock,  if  there  are  two  or  more  classes. 

Second,  A  statement  in  such  detail  as  the  tax  commis- 
sioner may  require  of  the  works,  structures,  real  estate, 
machinery,  underground  conduits,  wires  and  pipes,  owned 
by  said  corporation  and  subject  to  local  taxation  within 
the  commonwealth,  and  of  the  location  and  value  thereof; 
and,  in  the  case  of  domestic  business  corporations,  of  the 
merchandise  and  other  assets  belonging  to  the  corporation 
within  and  without  the  commonwealth. 

Third,  And,  except  as  to  street  railway  companies,  a 
complete  list  of  the  shareholders  of  the  corporation,  their 
residences,  and  the  amount  and  class  of  stock,  if  more  than 
one,  belonging  to  each.  If  stock  is  held  as  collateral  se- 
curity, the  list  shall  state  the  name  and  residence  of  the 
pledgor  and  of  the  pledgee. 

Railroad  corporations  and  telegraph,  street  railway,  and 
electric  railroad  companies,  whether  chartered  or  organized 
in  this  commonwealth  or  elsewhere,  shall  also  state  in  their 
return  the  whole  length  of  their  lines  and  so  much  of  the 
length  of  their  lines  as  is  without  the  commonwealth; 
electric  railroad  companies  shall  also  return  so  much  of 


202 

their  line  as  is  constructed  on  private  land ;  street  railway 
and  electric  railroad  companies  shall  also  state  in  their 
return  the  length  of  track  operated  by  them  in  each  city  or 
town  on  the  thirtieth  day  of  September  preceding  the  re- 
turn, to  be  determined  %  measuring  as  single  track  the 
total  length  of  all  tracks  operated  by  them,  including  sid- 
ings and  turnouts,  whether  owned  or  leased  by  them  or  over 
which  they  have  trackage  rights  only,  and  the  amount  of 
dividends  paid  on  their  capital  stock  during  the  year  end- 
ing on  such  preceding  thirtieth  day  of  September,  and 
during  each  year  from  the  organization  of  the  company. 
Telephone  companies  organized  under  the  general  or 
special  laws  of  this  commonwealth,  and  manufacturing, 
owning,  using,  selling  or  licensing  others  to  use  telephones 
or  other  apparatus  or  appliances  pertaining  thereto  wholly 
or  partially  within  this  commonwealth,  and  all  such  com- 
panies incorporated  without  the  commonwealth  for  the 
purpose  of  establishing,  owning  or  licensing  others  to  use 
such  telephones,  apparatus  or  appliances,  but  having  in  use 
within  it  any  of  their  lines  or  telephones,  shall  also  state 
in  their  return,  in  such  form  as  the  tax  commissioner  may 
require,  the  facts  necessary  to  ascertain  the  deductions 
authorized  by  the  following  section.  Such  domestic  com- 
panies may  annually,  between  the  first  and  tenth  days  of 
May,  make  a  return  to  the  tax  commissioner,  signed  and 
sworn  to  by  their  president,  treasurer  and  clerk,  specifying 
the  amount  and  market  value  of  all  stocks  in  other  cor- 
porations held  by  them  upon  which  a  tax  has  been  assessed 
and  actually  paid  either  in  this  or  in  any  other  state  for 
the  year  preceding  the  date  of  said  return ;  and  the  books, 
accounts  and  papers  of  such  corporations  shall  be  examined 
by  the  tax  commissioner  so  far  as  may  be  necessary  for 
the  verification  of  said  return.  Other  corporations  required 
to  make  a  return  under  the  provisions  of  this  section  shall 
also  state  therein  the  amount,  value  and  location  of  all 
works,  structures,  real  estate,  machinery,  underground 
conduits,  wires  and  pipes  owned  by  them  and  subject  to 
local  taxation  without  the  commonwealth.  Such  return 
shall  be  filed  by  the  tax  commissioner,  and  shall,  in  the 
case  of  said  domestic  business  corporations,  be  open  only 
to  the  inspection  of  the  tax  commissioner,  his  clerks  and 
assistants,  and  such  other  officers  of  the  commonwealth  as 
may  have  occasion  to  inspect  it  for  the  purpose  of  assessing 
or  collecting  taxes. 


203 

[The  Acts  of  1902,  chapter  342,  section  1,  provide  that  under- 
ground conduits,  wires  and  pipes,  laid  in  public  streets  by  any 
corporation,  except  street  railway  companies,  shall  be  assessed 
to  the  owners  thereof  in  the  cities  or  towns  in  which  they  are 
laid.  In  the  same  chapter,  sections  37,  38,  39  and  42  of  chapter 
14  of  the  Revised  Laws  are  amended,  directing  all  corporations, 
among  other  requirements,  to  return  to  the  Tax  Commissioner  a 
statement  of  their  underground  conduits,  wires  and  pipes  sub- 
ject to  local  taxation,  and  of  the  location  and  value  thereof;  and 
providing  for  the  deduction  of  their  value  as  found  by  the  Tax 
Commissioner  in  determining  the  value  of  the  corporate  excess. 

These  sections  of  the  Revised  Laws,  without  the  amendments, 
were  incorporated  in  the  business  corporation  act  (1903,  chapter 
437,  sections  48,  72,  73  and  76),  in  the  railroad  and  street  rail- 
way codification  (1906,  chapter  463,  Part  IL,  sections  211,  212, 
213  and  215,  Part  III.,  sections  125,  126,  127  and  129),  and  in 
the  electric  railroad  act  (1906,  chapter  516,  sections  14,  15,  16 
and  19),  which  acts  and  codification  repealed  said  chapter  14  of 
the  Revised  Laws  so  far  as  it  had  to  do  with  the  taxation  of  the 
several  classes  of  corporations  coming  within  their  scope. 

The  law,  then,  as  it  now  stands  on  the  statute  books,  provides 
for  the  local  taxation  of  such  underground  conduits,  wires  and 
pipes;  but  in  the  case  of  business  corporations,  railroad  corpo- 
rations and  electric  railroad  companies  provides  for  no  deduc- 
tion of  the  value  thereof  in  assessing  the  corporate  franchise 
tax.  This  results  in  the  taxation  of  such  underground  conduits, 
wires  and  pipes  both  locally  and  by  the  State,  —  a  condition  the 
commission  cannot  believe  to  have  been  the  legislative  intent.  It 
has  therefore  in  the  codification  applied  these  amendatory  pro- 
visions to  business,  railroad  and  electric  railroad  corporations  the 
same  as  now  attach  to  all  other  classes  of  corporations  except 
street  railway  companies.] 

Section  41.   The  tax  commissioner  shall  ascertain  from  valuation  of 
the   returns   or   otherwise  the  true  market  value ,  of  the  chlfe!  etc^.  ^^' 
shares  of  each  corporation  subject  to  the  requirements  of  i8^64!208?'' 
the  preceding  section,  and  shall  estimate  therefrom  the  fair  fle^s,  283,       ^ 
cash  value  of  all  of  said,  shares  constituting  its  capital  stock  flgj^^jiy^  §  2. 
on  the  preceding  first  day  of  May,  which,  unless  by  the  p^s.  13,  §§39, 
charter  of  a  corporation  a  different  method  of  ascertaining  isss,  238,  §  1. 
such  value  is   provided,   shall,   for  the  purposes   of  this  i898;4i7! 
part,  be  taken   as   the  true  value  of  its  corporate   f ran-  1902;  342,  §  3.* 
chise.     From  such  value  there  shall  be  deducted :  igoe!  463',  Part 

First,  In  case  of  a  railroad  corporation,  or  telegraph,  Pa^  nr; 
street  railway  or  electric  railroad  company,  whether  char-  |  \l^''  ^^^' 
tered   or  organized   in   this   commonwealth   or  elsewhere,  il^Aiien^SQi. 
so  much  of  the  value  of  its  capital  stock  as  is  proportional  foo^jj^g^i'sl^* 
to  the  length  of  that  part  of  its  line,  if  any,  lying  without  399 
the  commonwealth ;    and  also  the  value  of  its  works,  struc-  137  Mass.  so. " 


204 

144  'mS^'  598'   ^^^^^j  ^^^^  estate,  machinery,  underground  conduits,  wires 
146  iMass.  408.    and  pipcs,  subiect  to  local  taxation  within  the  common- 

152  iMass.  372.  i/i 

157  Mass.  70.     wealth. 

178  -M^J  469!  Second,  In  case  of  such  a  domestic  telephone  company, 
163  U.S.  I.''  the  amount  and  market  value  of  all  stock  in  other  cor- 
porations held  by  it  upon  which  a  tax  has  been  paid  in 
this  or  other  states  for  the  twelve  months  last  preceding 
the  date  of  the  return;  and  in  case  of  such  a  foreign  tele- 
phone company,  so  much  of  the  value  of  its  capital  stock 
as  is  proportional  to  the  number  of  telephones  used  or 
controlled  by  it  or  under  any  letters  patent,  owned  or 
controlled  by  it  without  the  commonwealth.  In  case  of 
a  telephone  company,  whether  chartered  or  organized  in 
this  commonwealth  or  elsewhere,  the  value  of  its  works, 
structures,  real  estate,  machinery,  underground  conduits, 
wires  and  pipes,  subject  to  local  taxation  within  the  com- 
monwealth. 

Third,  In  case  of  a  domestic  business  corporation,  the 
value  of  its  works,  structures,  real  estate,  machinery, 
underground  conduits,  wires  and  pipes,  within  the  com- 
monwealth subject  to  local  taxation,  and  of  securities 
which  if  owned  by  a  natural  person  resident  in  this  com- 
monwealth would  not  be  liable  to  taxation;  also  the  value 
of  its  property  situated  in  another  state  or  country  and 
subject  to  taxation  therein:  but  the  tax  commissioner  in 
determining  for  the  purposes  of  taxation  the  value  of  the 
corporate  franchise  of  any  such  corporation  shall  not  take 
into  consideration  any  debts  of  such  corporation  unless 
the  returns  required  from  it  contain  a  statement  duly 
signed  and  sworn  to,  setting  forth  that  no  part  of  such 
debts  was  incurred  for  the  purpose  of  reducing  the  amount 
of  taxes  to  be  paid  by  it. 

Fourth,  In  case  of  corporations  subject  to  the  require- 
ments of  the  preceding  section,  other  than  railroad  cor- 
porations, telegraph,  telephone,  street  railway  and  electric 
railroad  companies,  and  of  domestic  business  corporations, 
whether  chartered  or  organized  in  this  commonwealth  or 
elsewhere,  the  value  as  found  by  the  tax  commissioner  of 
their  works,  structures,  real  estate,  machinery,  underground 
conduits,  wires  and  pipes,  subject  to  local  taxation  wher- 
ever situated. 

For  the  purposes  of  this  section  the  tax  commissioner 
may  take  the  value  at  which  such  works,  structures,  real 


205 

estate,  machinery,  -underground  conduits,  wires  and  pipes 
are  assessed  at  the  place  where  they  are  located  as  the 
true  value,  but  such  local  assessment  shall  not  be  conclu- 
sive of  the  true  value  thereof. 

[By  the  provisions  of  section  40  (Revised  Laws,  chapter  14, 
section  37;  Acts  of  the  year  1906,  chapter  463,  Part  II.,  section 
211,  Part  III.,  section  125;  chapter  516,  section  14),  corporations 
are  required,  among-  other  things,  to  make  return  of  their  works, 
structures,  real  estate  and  machinery.  This  requirement  is  clearly 
for  the  purpose  of  giving  to  the  Tax  Commissioner  such  informa- 
tion as  will  aid  him  in  making  the  deductions  provided  for  in 
this  section.  While  it  may  be  doubtful  that  anything  can  be  in- 
cluded in  the  words  "  works,  structures  "  that  could  not  fairly  be 
embraced  within  the  meaning  of  real  estate  and  machinery,  the 
commission  has  thought  it  proper  to  employ  the  same  phraseology 
in  the  deduction  as  in  the  return  section ;  and  therefore  has  added 
the  words  "  works,  structures,"  omitted  in  Revised  Laws,  chapter 
14,  section  38,  in  this  and  other  sections  where  a  corresponding 
omission  occurs.] 

Sectio]^  42.     The  tax  commissioner  may  require  a  cor-  Corporation  to 

poration  to  prosecute  an  appeal  from  the  valuation  of  its  i9caivaiua- 

works,    structures,    real    estate,    machinery,    underground  i865,^83°'§  6. 

conduits,  wires  and  pipes  by  the  assessors  of  a  city  or  i89d,m;§7. 

tovTu,  either  to  the  county  commissioners  or  to  the  superior  jf  ^l!  u!'^  39. 

court,  whoso  decision  shall  be  conclusive  upon  the  question  J^Jf'  437'  1 73. 

of  value.     Upon  suck  an  appeal  the  tax  commissioner  may  i^^e,  463,  Part 


II.,  J  213,  Part 


be  heard,  and  in  the  superior  court  costs  may  be  awarded  i^l'|J|^ 
as  justice  requires. 

Section  43^ ^very  corporation  subject  to  the  provi-  on^or°pJrafe^*^ 

sions  of  section  forty  shall  annually  pay  a  tax  upon  its  ^ate^howde-  J^^ 
corporate  franchise,  after  making  the  deductions  provided  ilgJ^^Qg-  §  5 
for  in  section  forty-one,  at  a  rate  equal  to  the  average  of  ises]  283',  §  5. 
the  annual  rates  for  three  years  preceding  that  in  which  p.  s.'i3,  §  40.' 
such  assessment  is  laid,  the  annual  rate  to  be  determined  i886;270.' 
by  an  apportionment  of  the  whole  amount  of  money  to  be  Isqs,'  417! 
raised  by  taxation  upon  property  in  the  commonwealth  1903;  437? §^74. 
during  the  same  year,  as  returned  by  the  assessors  of  the  Jgoe' 271' I/9, 
several  cities  and  towns  under  the  provisions  of  section  n'i^fif^art 
ninety-three   of  Part   I.,   after   deducting  therefrom   the  ^^j^-HH^- 
amount  of  tax  assessed  upon  polls  for  the  preceding  year,  i2Aiien,"75, 
as  certified  to  the  secretary  of  the  commonwealth,  upon  98  Mass.  19, 25. 
the  aggregate  valuation  of  all  cities  and  towns  for  the  pre-  151.  ^^" 
ceding  year,  as  returned  under  sections  fifty-nine  and  sixty  Isl  u^l'.  5II'. 
of  Part  I. ;    but  the  said  tax  upon  the  value  of  the  cor-  ^^^  ^^^-  ^^' 


206 

139  Mass.  561.   porate  franchise  of  a  domestic  business  corporation,  after 
i57M^s!7a'   making  the  deductions  provided  for  in  section  forty-one, 
i79M^s'.  15^'    shall  not  exceed  a  tax  levied  at  the  rate  aforesaid  upon 
l^Waiiice^ih..  ^^  amount,  less  said  deductions,  twenty  per  cent  in  excess 
178U.  s.  120.    of  the  value,   as  found  by  the  tax  commissioner,  of  the 
works,    structures,    real    estate,    machinery,    underground 
conduits,  wires  and  pipes,  and  merchandise,  and  of  securi- 
ties which  if  owned  by  a  natural  person  resident  in  this 
commonwealth  would  be  liable  to  taxation ;    and  the  total 
amount  of  tax  to  be  paid  by  such  corporation  in  any  year 
upon  its  property  locally  taxed  in  this  commonwealth  and 
upon  the  value  of  its  corporate  franchise  shall  amount  to 
not  less  than  one-tenth  of  one  per  cent  of  the  market  value 
of  its  capital  stock  at  the  time  of  said  assessment  as  found 
by  the  tax  commissioner.     If  the  return  from  any  city 
or  tov^m   is  not   received   prior  to   the  twentieth  day   of 
August,  the  amount  raised  by  taxation  in  said  city  or  town 
for  the  preceding  year,  as  certified  to  the  secretary  of  the 
commonwealth,  may  be  adopted  for  the  purpose  of  this 
determination. 

[Section  9  of  chapter  271  of  the  Acts  of  the  year  1906,  ap- 
proved April  11,  1906,  amends  section  40  of  chapter  14  of  the 
Revised  Laws  by  making  the  rate  at  which  all  corporations  em- 
braced therein,  then  including  railroad  corporations  and  street 
railway  companies,  are  to  be  taxed  a  rate'* "  equal  to  the  average 
of  the  annual  rates  for  three  years  preceding  that  in  which  the 
assessment  is  laid,"  the  annual  rate  to  be  determined,  etc. 

Section  74  of  chapter  437  of  the  Acts  of  the  year  1903  (busi- 
ness corporation  act)  is  similarly  amended. 

Upon  June  7,  1906,  the  railroad  and  street  railway  codification, 
which  had  been  prepared  some  months  previously,  was  approved. 
This  codification  re-enacted  section  40  of  chapter  14  of  the  Re- 
vised Laws  as  it  existed  prior  to  the  amendment,  and  repealed 
said  section  40  so  far  as  it  applied  to  railroad  corporations  and 
street  railway  companies,  their  officers,  agents  and  employees. 

Upon  June  22,  1906,  the  electric  railroad  act  (Acts  of  the  year 
1906,  chapter  516)  was  approved.  This  enactment  also  contained 
the  provisions  of  the  Revised  Laws,  chapter  14,  section  40,  with- 
out amendment.  These  enactments  have  led  to  the  anomaly  that 
all  corporations  subject  to  a  tax  upon  their  corporate  franchise, 
save  railroad  corporations  and  street  railway  and  electric  railroad 
companies,  pay  a  tax  upon  their  corporate  excess  at  a  rate  equal 
to  the  average,  of  the  annual  rates  for  three  years  preceding  that 
in  which  the  assessment  is  laid ;  while  railroad  corporations,  street 
railway  and  electric  railroad  companies  pay  at  the  rate  for  the 
preceding  year.  While  this  distinction  is  likely  to  result  uniformly 
in  a  series  of  years,  its  operation  the  current  year  by  an  increase 


207 

in  rate  for  the  past  year  easts  an  additional  burden  upon  railroad 
corporations  and  street  railway  and  electric  railroad  companies. 

The  commission,  believing  this  condition  to  be  the  result  of  an 
oversight,  has  adopted  in  its  codification  the  average  of  the  annual 
rates  for  the  three  years  preceding  that  in  which  the  assessment 
is  laid  as  the  rate  at  which  all  corporations  subject  to  a  tax  upon 
their  corporate  franchises  are  to  be  taxed.] 

ADDITIONAL  CORPORATE  FRANCHISE  TAX. 

Section  44.     If  an  operatins:  street  railway  or  electric  Additional  tax 

.  -  ,  •       T      T  IT  '^^  street  rail- 

railroad  corapany,  mcmding  a  companj  whose  lines  are  wayandeiec- 
located  partly  within  and  partly  without  the  limits  of  the  companies, 
commonwealth,  Avhether  chartered  or  organized  under  the  578,  §3.  ' 
laws  of  this  commonwealth  or  elsewhere,  has  paid  during  Jgde',  463?pirt 
the  year  ending  on  the  thirtieth  day  of  September  preced-  5i6;|i|.^' 
ing  the  date  of  the  return  required  by  section  forty  divi- 
dends exceeding  in  the  aggregate  eight  per  cent  upon  its 
capital  stock,  it  shall  for  every  such  year,  in  addition  to 
the  tax  required  by  section  forty-three,  pay  a  tax  equal  to 
the  amount  of  such  excess  to  be  determined  as  therein 
provided  by  the  tax  commissioner;    but  such  additional 
tax  shall  not  be  imposed,  if,  from  the  date  when  the  com- 
pany commenced  to  operate  its  railway  or  railroad,  it  has 
not  paid  dividends  equivalent  in  the  aggregate  to  at  least 
six  per  cent  per  annum  upon  its  capital  stock  from  year  to 
year. 

Section  45.     If  the  value  of  the  works,  structures,  real  ^r^oratiol 
estate,  machinery,  underground  conduits,  wires  and  pipes  ^r^g^vafultfon 
of  a  corporation  subject  to  local  taxation  within  the  com-  excleds^tS^ 
monwealth,   as   determined   by  the   tax  commissioner,   is  commis- 
less  than  the  value  thereof  as  determined  by  the  assessors  ises,  283,  §  6. 

.  .  .PS13§  41 

of  the  place  where  it  is  situated,  he  shall  give  notice  of  his  i898, 417. 
determination   to   such   corporation;     and,   unless   within  1902 * 342,  §  s.' 
one  month  after  the  date  of  such  notice  it  applies  to  said  iqoI;  463,  Part 
assessors   for   an  abatement,   and,   upon   their  refusal   to  iii.,\^i29;^^^* 
grant  an  abatement,  prosecutes  an  appeal  under  the  provi-  fgy'jlig'^gi. 
sions  of  section  seventy-six  of  Part  I.,  2:ivinff  notice  thereof  Jf^^^^tS?- 

.      .  '^  1  •  ?         •  1  •        1^2  Mass.  384. 

to  the  tax  commissioner,  the  valuation  of  said  commis-  i67  Mass.  522. 
sioner  shall  be  conclusive  upon  said  corporation. 

Section  46.     When  the  tax  commissioner  has  received  4^be*^s^se? 
notice  of  an  abatement  of  the  taxes  of  any  corporation  as  "ranchis?'°^*** 
provided  in  section  eighty-four  of  Part  I.,  he  shall  assess  \QQf'^^2§2 
upon  such  corporation  an  additional  tax  upon  the  corpo- 
rate franchise  value  of  such  corporation,  in  such  amount  as 


208 

shall  make  the  total  franchise  tax  equal  that  which  would 
have  heen  assessed  by  said  commissioner  had  the  valuation 
as  established  by  said  abatement  been  adopted  by  him  when 
making  his  original  assessment  upon  the  corporate  fran- 
chise value  of  such  corporation,  which  said  additional  tax 
shall  be  paid  and  collected  as  an  addition  to  the  franchise 
tax  next  to  be  assessed  and  laid  upon  said  corporation  after 
such  abatement,  and  such  additional  tax,  when  collected, 
shall  be  distributed  as  if  it  were  part  of  said  original  tax. 

COMMUTATION    TAX. 

Returns  of  Section  47.     A  strcct  railwav  or  an  electric  railroad 

street  railway  .       ,      , .  *^     ,  ,.  i  ,     i 

and  electric  compauy,  includmg  a  company  whose  lines  are  located 
panief  to'^™"  partly  within  and  partly  without  the  limits  of  the  common- 
ligff 4??;  wealth,  whether  chartered  or  organized  under  the  laws  of 
R.\.^4,  §  43.  this  commonwealth  or  elsewhere,  shall  annually,  on  or 
iii.^'U33;^^'^*  before  the  fifteenth  day  of  October,  make  and  file  in  the 
?o?''l^^oor    office  of  the  board  of  assessors  of  every  city  and  town  in 

181  Mass.  205.         ,  .    ,  ^     ,  .-,  -i  i  i    i         • 

182  Mass.  41,  wliich  any  part  of  the  railway  or  railroad  operated  by  it 
184  Mass.  294.    is  sltuatcd  a  rctum  signed  and  sworn  to  by  its  president 

187  Mass.  352.  ,   ^  ^    x-  •       xi  j?  x        *!         'I 

190  Mass.  123.  and  treasurer,  stating,  m  the  case  oi  a  street  railway  com- 
196U.  s.  539.  pany^  the  length  of  track  operated  by  it  in  public  ways 
and  places  in  such  city  or  town,  and  also  the  total  length 
of  track  operated  by  it  in  public  ways  and  places,  and  in 
the  case  of  an  electric  railroad  company  stating  the  length 
of  track  operated  by  it  longitudinally  upon  public  ways 
and  places  in  such  city  or  town,  and  also  the  total  length 
of  track  operated  by  it,  determined  as  provided  in  section 
forty,  and  also  the  amount  of  its  gross  receipts  during  the 
year  ending  on  the  preceding  thirtieth  day  of  September, 
including  therein  all  amounts  received  by  it  from  the  oper- 
ation of  its  railway  or  railroad,  but  excluding  income 
derived  from  the  sale  of  power,  rental  of  tracks  or  other 
sources. 
18^8^417^"  Section  48.     On  or  before  the  first  day  of  [N'ovember 

r!\.^i4,  §  44.  annually,  the  assessors  of  every  city  and  town  in  which  a 
iiiS^ih^^^^  street  railway  or  an  electric  railroad  is  operated,  including 

181  mS'  205    ^   company   whose   lines   are   located   partly   within    and 

182  Mass.  41,     partly  without  the  limits  of  the  commonwealth,  whether 
184  Mass.  294.    chartered   or  organized  under  the  laws  of  this  common- 
190  Mass!  123!    wealth   or   elsewhere,   shall   assess   on  each  company   de- 
scribed in  the  preceding  section  operating  a  railway  or 


209 

railroad  therein  an  excise  tax  of  an  amount  equal  to  such 
proportion  of  the  following  percentages  of  the  gross  re- 
ceipts of  such  company  as,  in  the  case  of  a  street  railway- 
company,  the  length  of  tracks  operated  by  it  in  public  ways 
and  places  of  such  city  or  town  bears  to  the  total  length 
of  tracks  operated  by  it  in  public  ways  and  places,  and  in 
the  case  of  an  electric  railroad  company  as  the  length  of 
tracks  operated  by  it  longitudinally  in  public  ways  and 
places  of  such  city  or  town  bears  to  the  total  length  of 
tracks  operated  by  it. 

The  percentages  shall  be  based  upon  the  annual  gross 
receipts  for  each  mile  of  track  as  follows,  and  computed 
upon  the  aggregate  of  said  annual  gross  receipts:  four 
thousand  dollars  or  less,  one  per  cent;  more  than  four 
thousand  dollars  and  less  than  seven  thousand,  two  per 
cent;  more  than  seven  thousand  dollars  and  less  than 
fourteen  thousand,  two  and  one-quarter  per  cent;  more 
than  fourteen  thousand  dollars  and  less  than  twenty-one 
thousand,  two  and  one-half  per  cent;  more  than  twenty- 
one  thousand  dollars  and  less  than  twenty-eight  thousand, 
two  and  three-quarters  per  cent;  twenty-eight  thousand 
dollars  or  more,  three  per  cent. 

The  excise  tax  provided  by  this  section  shall  be  in  addi- 
tion to  the  taxes  otherwise  provided  by  law. 

Section^  49.     The  aldermen  of  a  city,  the  selectmen  Revision]of 

tax 

01  a  town,  or  a  street  railway  or  an  electric  railroad  com-  i898, 578,  §  8. 
pany  operating  in  such  city  or  town  may  petition  the  i^oejfefpfrt 
board  of  railroad  commissioners  for  a  revision  of  the  516,' I M.^' 
amount  of  the  excise  tax  to  be  paid  by  a  company  under 
the  provisions  of  the  preceding  section.  Said  board  shall, 
upon  such  petition,  after  public  notice  and  a  hearing  at 
which  said  aldermen  or  selectmen  and  said  company  may 
submit  evidence,  determine  the  average  annual  cost  to 
said  city  or  town  of  the  work  done  by  it  during  the  pre- 
ceding three  years  under  the  provisions  of  chapter  four 
hundred  and  sixty-three  of  the  acts  of  the  year  nineteen 
hundred  and  six,  which  it  w^as  not  by  law  required  to 
do  prior  to  the  first  day  of  October  in  the  year  eighteen 
hundred  and  ninety-eight,  and  also  the  average  annual  pay- 
ment made  by  said  company  to  said  city  or  town  under 
and  pursuant  to  the  provisions  of  the  preceding  section 
during  said  three  years;  and  having  determined  said 
average  annual  cost   and  average  annual  payments,   said 


210 


Notice  to  tax 
collector  of 
amount  of 
excise  tax. 
1898,  578,  §  9. 
R.  L.  14,  §  46. 
1906,  463,  Part 
III.,  I  136; 
616.  §  25. 


Application  of 

taxes. 

1898,  578,  §  10. 

R.  L.  14,  §  47. 

1906,  463,  Part 
III.,  §  137;  516, 
§26. 

1907,  318. 

181  Mass.  205. 

182  Mass.  41, 
49. 

184  Mass.  294. 
190  Mass.  123. 


board  shall  fix  and  determine  tlie  proportion  of  a  per- 
centage of  the  gross  receipts  which  shall  be  paid  as  an 
excise  tax  under  the  provisions  of  said  section  by  the 
company  to  said  city  or  town  annually  thereafter,  said 
percentage  to  be  fixed  at  such  a  rate  as  will  be  neces- 
sary to  yield  to  said  city  or  town  annually  thereafter  an 
amount  equal  to  the  average  annual  cost  to  said  city  or 
town  determined  as  aforesaid;  and  the  percentage  so 
fixed  shall  not  again  be  changed  for  the  period  of  three 
years,  and  then  only  in  the  manner  herein  provided.  Said 
board  may  at  any  time  upon  petition  therefor  by  a  city 
or  town  entitled  to  a  part  of  the  excise  tax  paid  by  a  street 
railway  or  an  electric  railroad  company,  after  such  notice 
as  the  board  may  order  to  all  other  cities  and  towns  en- 
titled to  share  in  the  excise  tax  paid  by  said  company,  and 
after  a  hearing,  determine  as  to  the  distribution  thereof 
among  the  several  cities  and  to^vns  in  which  such  company 
operates  any  part  of  its  railway  or  railroad,  and  fix  the 
proportions  thereof  to  which  they  shall  respectively  be 
entitled,  which  shall  thereafter  be  the  proportions  of  said 
excise  tax  to  be  assessed  upon  said  company,  instead  of  the 
proportion  based  upon  length  of  tracks  as  hereinbefore 
provided. 

Section  50.  Prior  to  the  fifteenth  day  of  I^ovember 
in  each  year  the  assessors  of  every  city  and  town  shall 
notify  the  collector  of  taxes  thereof  of  the  amount  of  ex- 
cise tax  assessed  therein  under  th^  provisions  of  section 
forty-eight,  and  the  collector  shall  forthwith  notify  the 
treasurer  of  each  street  railway  and  electric  railroad  com- 
pany of  the  amount  of  excise  tax  so  assessed  upon  it,  which 
shall  become  due  and  payable  within  thirty  days  after  the. 
receipt  of  such  notice.  The  provisions  of  Part  II.  so  far 
as  appropriate  shall  apply  to  the  collection  of  such  excise 
tax. 

Section  51.  All  taxes  which  are  collected  from  a  street 
railway  or  an  electric  railroad  company  and  paid  to  a 
city  or  town  under  the  provisions  of  the  preceding  sec- 
tion, of  section  sixty-five,  and  of  section  twenty-eight  of 
chapter  five  hundred  and  seventy-eight  of  the  acts  of  the 
year  eighteen  hundred  and  ninety-eight,  shall  be  applied 
in  the  case  of  street  railway  companies  toward  the  repair 
and  maintenance  of  the  public  ways  and  the  removal  of 
snow  therefrom  within  such  city  or  town,  and  in  the  case 


211 

of  electric  railroad  companies  shall  be  applied  toward  tlie 
construction,  repair  and  maintenance  of  the  public  ways 
and  places  in  which  the  tracks  of  such  company  are  lo- 
cated, and  to  the  removal  of  snow  from  such  public  ways 
and  places  within  such  cities  and  towns. 

TAXATION    OF    TELEGRAPH    COMPANIES. 

Section   52.      Every  corporation  or  association  char-  Returns  and 
tered  or  organized  without  the  commonwealth  which  owns,  teSgraph^'^" 
controls  or  uses  a  line  of  telegraph  within  the  common-  i8M!208r§i9. 
wealth,  shall  make  the  returns  required  in  section  forty  Rs^'i|^|4y' 
to  be  made  by  telegraph  companies  within  the  common-  fsg^M^'.^s^; 
wealth,  except  the  list  of  its  shareholders ;   and  shall  annu-  125  u.  s.  530 
ally  pay  a  tax  at  the  rate  determined  in  the  manner  pro-  les  u.  s.  i..t 
vided  in  section  forty-three ;  and  all  telegraph  lines  within 
the  commonwealth  controlled  and  used  by  such  corporation 
or   association,   shall,    for  the  purposes   of  this  part,   be 
deemed  to  be  a  part  of  its  own  lines. 

TAXATION  OF  THE  GUARANTY  CAPITAL  OF  MUTUAL  FIRE 
INSURANCE  COMPANIES  ORGANIZED  UNDER  GENERAL 
LAWS,  AND  OF  SHARES  IN  THE  PERMANENT  FUND  OF 
MUTUAL  MARINE,  AND  MUTUAL  FIRE  AND  MARINE,  IN- 
SURANCE   COMPANIES. 

Section  53.     Mutual  fire  insurance  companies  with  a  Guaranty  capi- 
guaranty   capital,    mutual  marine,    and  mutual  fire   and  manentfunda 

• .  T  .     /.         1     1      n      of  certain 

marine,  insurance  companies  with  a  permanent  lund  shall,  mutual  in- 
if  organized  under  the  general  laws,  be  subject  to  the  pro-  paSes,\ow^' 
visions  of  this  part  imposing  a  tax  upon  the  franchises  igyl^sis, 
of   corporations    organized    for    purposes    of   business    or  |>^  ^^-j^^.^  ^q 
profit  having  a  capital  stock  divided  into  shares,  relative  Jsy^M^^^so^' 
to  the  assessment  and  payment  of  a  tax  upon  such  guaranty  139  Mass.  564. 
capital  or  permanent  fund,  and  shall  make  all  such  re- 
turns   and   payments,    and  be   subject   to   like   penalties, 
liabilities   and  forfeitures,   and  have  the  same  rights  of 
appeal  as  are  required  of,  imposed  upon  and  given  to  such 
corporations  in  this  part. 

TAXATION    OF    FOREIGN    CORPORATIONS. 

Section  54.     Every  foreign  corporation  shall  annually.  Annual  certifi- 
within   thirty   days   after   the   date   fixed   for   its   annual  dition. 
meeting,  or  within  thirty  days  after  the  final  adjournment  1895',  311!  §  1! 


212 

R.  L.  126,  §  13.  of  said  meeting,  but  not  more  than  three  months  after  the 
1905!  233!  "  date  so  fixed  for  said  meeting,  prepare  and  file  in  the 
^^'  '  office  of  the  secretary  of  the  commonwealth,  upon  pay- 
ment of  the  fee  provided  in  section  ninety-one  of  chapter 
four  hundred  and  thirty-seven  of  the  acts  of  the  year 
nineteen  hundred  and  three,  a  certificate  signed  and  sworn 
to  by  its  president,  treasurer,  and  by  a  majority  of  its 
board  of  directors,  showing  the  amount  of  its  authorized 
capital  stock,  and  its  assets  and  liabilities  as  of  a  date 
not  more  than  ninety  days  prior  to  said  annual  meeting, 
in  such  form  as  is  required  of  domestic  business  corpora- 
tions under  the  provisions  of  section  forty-five  of  said 
chapter,  and  the  change  or  changes,  if  any,  in  the  other 
particulars  included  in  the  certificate  required  by  section 
sixty  of  said  chapter,  made  since  the  filing  of  said  certifi- 
cate or  of  the  last  annual  report. 
certifi'Jate^  SecTion  55.    A  Certificate  which  is  required  to  be  filed 

iIq?;  492!  ^  ^'  ^y  the  preceding  section  shall  be  accompanied  by  a  written 
1903;  43?;  I  If.  statement  under  oath  by  an  auditor,  as  provided  in  section 
188  Mass.  239.  forty-scvcn  of  chapter  four  hundred  and  thirty-seven  of 
the  Acts  of  the  year  nineteen  hundred  and  three,  except 
that  such  auditor  shall  in  all  cases  be  chosen  by  the  board 
of  directors.  Before  it  is  filed  it  shall  be  submitted  to 
the  tax  commissioner,  who  shall  examine  said  certificate 
and  shall  assess  upon  the  corporation  an  excise  tax,  if  any 
is  due,  in  accordance  with  the  provisions  of  the  following 
section.  If  he  finds  that  the  certificate  is  in  compliance 
with  the  requirements  of  the  preceding  section,  he  shall 
indorse  his  approval  thereon;  but  no  certificate  shall  be 
filed  until  he  has  indorsed  his  approval  thereon,  and  until 
the  excise  tax  required  by  the  following  section,  if  any 
is  due,  has  been  paid  to  the  treasurer  and  receiver  general. 

[The  phrase,  "together  with  the  evidences  of  the  payment  of 
any  taxes  which  may  have  been  assessed  upon  the  corporation  by 
any  city  or  town  in  the  commonwealth  for  the  year  last  preced- 
ing," which  appears  in  section  67  of  chapter  437  of  the  Acts  of 
the  year  1903,  from  which  this  section  is  taken,  has  been  omitted 
in  the  codification. 

The  provision  allowing  a  foreign  corporation,  in  the  payment 
of  its  excise  tax,  to  deduct  the  amount  of  all  taxes  upon  property 
paid  by  it  to  any  city  or  town  in  the  Commonwealth  during  the 
preceding  year,  having,  by  the  Acts  of  the  year  1907,  chapter  578, 
been  stricken  from  section  75  of  said  chapter  437,  it  has  seemed 
to  the  commission  to  be  unnecessary  to  include  this  portion  of  the 
section  in  its  codification.] 


213 

Sectiois"  56.     Every  foreign  corporation  shall,  in  each  J^fn^S)?- 
year,   at  the  time  of  filing  its  annual  certificate  of  con-  PgJI^^JJ^- 
dition,  i^ay  to  the  treasurer  and  receiver  general,  for  the  iqot,  578! 
use  of  the  commonwealth,  an  excise  tax  to  be  assessed  by  239. 
the  tax  commissioner  of  one  fiftieth  of  one  per  cent  of  the 
par  value  of  its  authorized  capital  stock  as  stated  in  its 
annual  certificate  of  condition;    but  the  amount  of  such 
excise  tax  shall  not  in  any  one  year  exceed  the  sum  of  two 
thousand  dollars. 

NOTICE   OF   TAX. 

Section  57.     The  tax  commissioner  shall  annually,  as  Notice  of  tax. 
soon  as  may  be  after  the  first  Monday  of  August,  give  isso!  227',  §  2. " 
notice  to  the  treasurer  of  every  corporation,  company  or  53.  •^^•^^^^• 
association,  or  the  secretary  or  general  agent  of  every  life  Ull',  lis,  §  23. 
insurance  company  which  is  liable  to  taxation  under  the  r^liI'^IM 
provisions  of  sections  twenty-six,  thirty-seven,  thirty-eight,  }|g3, 437,  §  77. 
forty-three,    forty-four,    fifty-two   and   fifty-three,    of    the  f L^^^\^- ggg 
amount  thereof;  that  it  will  be  due  and  payable  to  the 
treasurer  and  receiver  general  within  thirty  days   after 
the  date  of  such  notice,  but  not  before  the  twentieth  day  of 
October;  and  that  within  ten  days  after  the  date  of  such 
notice  the  corporation,  company  or  association  may  apply 
for  a  correction  of  said  tax,  and  be  heard  thereon  by  the 
board  of  appeal. 

.  penalties. 

Section  58.     If  a  domestic  business  corporation  fails  Penalties  for 
to  file  its  tax  return  before  the  tenth  day  of  May  of  each  make  returns, 
year,  or  if  a  foreign  corporation  omits  to  file  the  certificate  statemenfs^ 
as   required   in   section   fifty-four,   the   tax   commissioner  thereof.^^ 
shall  give  notice  by  mail,  postage  prepaid,  to  the  corpora-  \lll\  fol;  1 14. 
tion  of  its  default,  directed,  in  the  case  of  a  foreign  cor-  }|^^|  f|f •  |  9^- 
poration,  to  the  resident  manager,  if  any,  in  the  United  p-  ^-  ^^^  |  ^^ 
States,  or  to  any  other  person  designated  by  the  corpora-  58.       ' 
tion,  by  written  notice  filed  in  the  ofiice  of  the  commis-  §§  49. 50,*68, 
sioner,   as  provided  in  section  fifty-nine  of  chapter  four  1906.346, 
hundred  and  thirty-seven  of  the  acts  of  the  year  nineteen  188  Mass.  239. 
hundred  and  three  for  notice  of  the  service  of  legal  proc- 
ess, which  notice  to  said  foreign  corporation  shall  contain 
a  copy  of  this  section  and  of  sections  sixty-five  to  sixty- 
eight   inclusive   of   said   chapter.       If    such   business   or 
foreign  corporation  fails  to  file  such  return  or  certificate 


214 


Penalties  for 
neglect  to 
make  returns 
and  for  false 
statements. 
Recovery 
thereof. 
1862,  224,  §  9. 
1864, 208, §  U 
1865,  283,  §  U 
1873,  141,  §  9. 
1878,  218,  §  3. 
1880,  227,  §  4. 
P.S.  13,  §§7, 
28,  36,  54. 
1890,  197,  §  2. 
1892,  129. 
1898,  417. 
R.  L.  14,  §  55. 


within  thirty  days  after  such  notice  of  default  has  been 
given  or  mailed,  it  shall  forfeit  to  the  commonwealth  not 
less  than  five  nor  more  than  ten  dollars  for  each  day  for 
fifteen  days  after  the  expiration  of  the  said  thirty  days, 
and  not  less  than  ten  nor  more  than  two  hundred  dollars 
for  each  day  thereafter  during  which  such  default  con- 
tinues, or  any  other  sum,  not  greater  than  the  maximum 
penalty  or  forfeiture,  which  the  court  may  deem  just  and 
equitable,  which,  in  the  case  of  a  foreign  corporation,  shall 
be  recovered  as  herein  provided. 

Penalties  and  forfeitures  incurred  by  any  domestic  busi- 
ness or  foreign  corporation  which,  being  subject  to  the 
provisions  of  this  act,  omits  to  cause  any  certificate  or 
return  which  may  be  required  by  the  provisions  of  sec- 
tions forty  and  fifty-four  to  be  duly  filed  may  be  recov- 
ered in  an  action  brought  in  the  county  of  Suffolk  in  the 
name  of  the  commonwealth,  or  they  may  be  recovered  by 
an  information  in  equity  in  the  name  of  the  attorney- 
general  at  the  relation  of  the  tax  commissioner,  brought 
in  the  supreme  judicial  court  in  the  county  of  Suffolk. 
Upon  such  information,  the  court  may  issue  an  injunction 
restraining  the  further  prosecution  of  the  business  of  the 
corporation  named  therein  until  such  penalties  or  for- 
feitures, with  interest  and  costs,  have  been  paid,  and  until 
the  returns  and  certificates  required  by  this  act  have  been 
filed. 

Section  59.  A  corporation  or  agent  neglecting  to  make 
the  return  required  by  section  twenty-six  shall  forfeit 
fifty  dollars  for  every  day  during  which  such  neglect  con- 
tinues. A  corporation,  company,  association  or  partner- 
ship which  fails  to  make  the  return  required  by  section 
thirty-four  shall  forfeit  twenty-five  dollars.  If  it  neglects 
to  make  such  return  for  ten  days  after  notice  thereof, 
addressed  to  it,  has  been  deposited  in  the  postoffice, 
postage  prepaid,  it  shall  further  forfeit  five  hundred  dol- 
lars, and  upon  information  by  the  attorney  general  at 
the  relation  of  the  tax  commissioner  it  may  be  restrained 
from  the  further  transaction  of  its  business  in  this  com- 
monwealth until  it  has  made  such  return;  but  such 
penalty  shall  not  be  incurred  if  it  is  proved  that  the  re- 
turn was  duly  made  and  deposited  in  the  postoffice,  postage 
prepaid,  properly  directed  to  the  tax  commissioner,  and 
that  there  was  no  neglect.     If  any  return  required  by  sec- 


215 

tion  thirty-four  contains  a  false  statement  which  is  known, 
or  by  the  exercise  of  reasonable  care  might  have  been 
known,  to  the  agent  or  officers  making  it,  to  be  false,  such 
company  or  agent  shall  be  liable  for  the  amount  of  tax 
thereby  lost  to  the  commonwealth,  and,  in  addition,  to 
a  penalty  of  not  less  than  five  hundred  nor  more  than  five 
thousand  dollars. 

Any  corporation,  company,  co-partnership  or  associa- 
tion, except  a  domestic  business  or  foreign  corporation, 
liable  to  taxation  under  "the  provisions  of  sections  thirty- 
seven,  thirty-eight,  forty-three,  forty-four,  fifty-two  and 
fifty-three,  neglecting  to  make  the  returns  required  by 
this  act,  or  refusing  or  neglecting,  when  required,  to  sub- 
mit to  the  examinations  provided  for  therein,  shall  for- 
feit two  per  cent  upon  the  par  value  of  its  capital  stock. 
A  guardian,  executor,  administrator,  trustee  or  partner- 
ship neglecting  to  make  the  returns  required  by  section 
eight  shall  forfeit  one  hundred  dollars.  Such  penalties 
may  be  recovered  in  an  action  of  tort  to  be  brought  by  the 
treasurer  and  receiver  general,  in  the  name  of  the  com- 
monwealth, either  in  the  county  of  Suffolk  or  in  the 
county  in  which  the  corporation  is  located. 

Section  60.     Corporations  which  neglect  to  pay  taxes  interest  on  un- 
assessed  and  certified  to  the  treasurer  and  receiver  general  igoo.^tol^' 
by  the  tax  commissioner  shall  pay  interest  at  the  rate  of  ^l[  f|^§  55. 
six  per  cent  per  annum  from  the  time  when  such  taxes  i903.437,  §Z9 
were  payable  until  they  are  paid,  if  such  payment  is  made 
before  the  commencement  of  proceedings  for  the  recovery 
thereof,  and  twelve  per  cent  if  made  after  the  commence- 
ment thereof. 

Section  61.     If  a  savings  bank,   institution  for  sav-  Action  at  law 

.      .  1  /.  ,1  to  recover  un- 

mgs,   insurance  company,  or  agent  tnereoi,  or  otner  cor-  paid  taxes, 

poration,    coihpany   or   association   fails   to   pay   the   tax  }864;  208;  §  14! 

required  by  sections  twenty-one,  twenty-four,  twenty-six,  Jfff ;  flf;  |  \q[ 

twenty-eight    to    thirty-one    inclusive,    thirty-five,    thirty-  Jlyfiiis,  §3. 

seven,  thirty-eight,  forty,  forty-three,  fifty-two,  fifty-three  ^^  ^^^'  §§  22, 

and  fifty-six,  to  be  paid  by  the  commonwealth,  the  treasurer  isQS,  417. 

and  receiver  o-eneral  may  recover  the  same  in  an  action  R.  l!  14,  §  57. 

1903  437  5  78 

of  contract  brought  in  the  name  of  the  commonwealth.       11  Aiien,  283.  ' 

123  Mass.  497. 

Section  62.     Penalties  incurred  by  corporations,  com-  Collection  of 

J        T  . .         T         .  J    penalties  and 

panics    or    associations,    except    domestic    business    and  unpaid  taxes 
foreign  corporations,  for  failure  to  make  the  returns  re-  n^tioS!^ 


216 

1862, 224,  §  11.  quired  by  sections  eight,  twenty-six,  thirty-four,  thirty- 
1873;  141!  §  lo!  seven,  thirty-eight,  forty,  fifty-two  and  fifty-three,  may 
iilo]  22?;  1 4!  also  be  collected  by  an  information  brought  in  the  supreme 
28^36^^!^^^'  judicial  court  by  the  attorney  general  at  the  relation- of 
iIoo'IqI'  ^^^®  ^^^  commissioner;  and  taxes  under  the  provisions  of 
1903"  437^^8  ^Gctions  twcnty-onc,  twenty-four,  thirty-eight,  forty-three, 
99M'ass.  isi.     fift^^-two  and  fifty-three,  may  also  be  collected  by  a  like 

123  Mass  496  "  1/  7  ./  j  ^ 

125  u.  s.'530.'  information  at  the  relation  of  the  treasurer  and  receiver 
general.  The  court  may  issue  an  injunction  upon  such 
information,  restraining  the  further  prosecution  of  the 
business  of  such  company  or  corporation  until  such  penal- 
ties or  taxes,  with  interest  and  costs  thereon,  have  been 
paid,  and  the  returns  have  been  made ;  and  in  the  case  of 
a  domestic  business  or  foreign  corporation,  taxes  which  are 
assessed  under  the  provisions  of  this  act  may  also  be 
collected  by  an  information  brought  in  the  supreme  judi- 
cial court  by  the  attorney  general  at  the  relation  of  the 
treasurer  and  receiver  general,  and  the  court  may  issue  an 
injunction  upon  such  information,  restraining  the  further 
prosecution  of  the  business  of  such  corporation  until  such 
taxes,  with  interest  and  costs  thereon,  have  been  paid;  but 
no  telegraph  company  accepting  the  provisions  of  section 
five  thousand  two  hundred  and  sixty-three  of  the  Revised 
Statutes  of  the  United  States  shall  be  enjoined  from  con- 
structing, maintaining  or  operating  a  telegraph  line  over 
and  along  any  of  the  military  or  post  roads  of  the  United 
States  within  this  commonwealth, 
porateprop-  Section  63.     The  lessee  of  the  works,  structures,  real 

fiabie^fo?  the^^  cstatc  or  machinery  of  any  corporation,  company  or  asso- 
tax.  ciation  taxed  under  the  provisions  of  sections  twenty-four, 

p.s.'is,  §56.  '  thirty-eight,    forty,    forty-three,    fifty-two   and    fifty-three 
R.  l'.  14,  §  60.    shall  also  be  liable  for  the  payment  of  the  tax,  and  upon 
such  payment  may,  in  the  absence  of  an  agreement  to  the 
contrary,  retain  it  out  of  the  rent  of  the  property,  or  re- 
cover it  in  an  action  against  the  lessor. 
Exemption  Section  64.     No  taxcs  shall  be  assessed  in  a  citv  or 

from  local  • 

taxation.  towu  lor  statc,  couuty  or  town  purposes,  upon  the  shares 

ment.  iu  the  Capital  stock  of  corporations,  companies  or  associa- 

15.  '"  '  '  tions  taxable  under  the  provisions  of  sections  thirty-seven, 
liei;  ll?;  I  2^'  thirty-eight,  forty-three,  fifty-two  and  fifty-three,  for  any 
188^7,^228. ^'^'  J^^^^  ^^^  which  they  pay  to  the  treasurer  and  receiver  gen- 
lill' 417- 57!"  ^^^^  ^  ^^^  ^^  their  corporate  franchises;  or,  in  the  case  of 
§§  4.'26.  '      '  safe  deposit,  loan  and  trust  companies,  for  any  year  for 


217 

which  they  pay  a  tax  as  provided  in  section  thirty-seven.  i90o,  413,  §  5. 
Such  proportion  of  the  tax  collected  of  each  corporation,  r.  l!  14,  *§  ei! 
company  or  association  nnder  the  provisions  of  sections  igoeites,  Paft 
thirty-eight  and  forty-three,  except  street  railway  and  elec-  Partiii.?§i3i; 
trie  railroad  companies,  as  corresponds  to  the  proportion  fsl'il^^;  5^9 
of  its  stock  owned  by  persons  residing  in  this  common-  JflMass'tto 
wealth,  shall  be  distributed,  credited  and  paid  to  the  sev-  i90  Mass.  123. 
eral  cities  and  towns  in  which,  from  the  returns  or  other 
evidence,  it  appears  that  such  persons  resided  on  the  pre- 
ceding first  day  of  May,  according  to  the  number  of  shares 
so  held  in  such  cities  and  towns  respectively.  Such  pro- 
portion of  the  tax  paid  by  safe  deposit,  loan  and  trust 
companies  under  the  provisions  of  section  thirty-seven  as 
corresponds  to  the  amount  of  property  held  by  them  in 
trust  or  on  deposit,  as  described  in  said  section,  for  bene- 
ficiaries or  depositors  resident  in  this  commonwealth,  shall 
be  distributed,  credited  and  paid  to  the  several  cities  and 
towns  in  which,  from  the  returns  or  other  evidence,  it 
appears  that  such  beneficiaries  and  depositors  resided  on 
the  first  day  of  the  preceding  May,  according  to  the  aggre- 
gate amount  so  held  for  beneficiaries  and  depositors  resid- 
ing in  such  cities  and  towns  respectively.  If  stock  is 
held  by  co-partners,  guardians,  executors,  administrators 
or  trustees,  the  proportion  of  tax  corresponding  to  the 
amount  of  stock  so  held  shall  be  credited  and  paid  to  the 
cities  and  towns  where  the  stock  would  have  been  taxed 
under  the  provisions  of  clauses  four,  five,  six  and  seven  of 
section  twenty-three  and  section  twenty-seven  of  Part  I. 
If  a  city  or  town  owns  stock  in  any  corporation  taxed  upon 
its  corporate  franchise  under  the  provisions  of  this  part, 
a  return  to  said  city  or  town  shall  be  made  as  if  it  were 
owned  by  persons  resident  therein.  Such  proportion  of 
the  tax  collected  of  each  electric  railroad  company  under 
the  provisions  of  sections  forty-three  and  forty-four  as 
corresponds  to  the  proportion  of  its  line  constructed  on 
private  land  shall  be  distributed,  credited  and  paid  as  above 
provided.  Such  proportion  of  the  tax  collected  from  any 
such  electric  railroad  company  under  the  provisions  of  sec- 
tions forty-three  and  forty-four  as  corresponds  to  the  pro-  - 
portion  of  its  line  located  longitudinally  upon  public  ways 
and  places  shall  be  distributed,  credited  and  paid  to  the 
several  cities  and  towns  in  proportion  to  the  length  of 
tracks  operated  by  such  company  in  such  cities  and  towns 


218 

respectively.      The  tax   collected   of  each   street  railway 
company  under  the  provisions  of  sections  forty-three  and 
forty-four  shall  be  apportioned  among  the  several  cities 
and  towns  in  proportion  to  the  length  of  tracks  operated 
by  such  company  in  said  cities  and  towns  respectively. 
The  share  of  the  tax  paid  by  a  street  railway  or  an  elec- 
tric railroad  company  in  respect  of  its  tracks  upon  loca^ 
tions  granted  by  the  board  of  metropolitan  park  commis- 
sioners or  by  the  Wachusett  mountain  state  reservation 
commission   shall  be   apportioned   to   the  commonwealth, 
and  shall  be  credited  by  the  treasurer  and  receiver  general 
to  the  sinking  fund  of  the  loan  to  which  the  expenditure 
for  the  road,  boulevard,  park  or  reservation  in  which  the 
tracks  are  located  was  charged. 
lone^'tS^lter-       Section  65.    The  tax  commissioner  shall,  subject  to  ap- 
diietodSes*^    P^^^  ^^  *^^  board  of  appeal,  ascertain  and  determine  the 
tSfi's^  M?^'5  IS   ^.^^^^^^  ^^^®  ^^  ^^^^  ^^*y  ^^^  town  under  the  provisions  of 
p.  s.'i3,  §  58. '  the  preceding  section,  notify  the  treasurer  of  each  city  and 
§§  4.' 6.'  '         town  thereof  and  certify  the  amount  as  finally  detei-mined, 
1903,"  437,  §^87.  to  the  treasurer  and  receiver  general,  who  shall  thereupon 
pay  over  the  same.     1906.  463,  Part  11.,  §  217,  Part  iii.,  §  132;  516,  §  21. 
iiab?eto*taxL         Section  GQ.     Evcry  insurance  company  liable  to  taxa- 
tion to  submit  tion  under  the  provisions  of  section  twenty-six,  and  every 

books  to  m-  .  ^  c         •  "tit 

spection  and  corporatiou,  cxccpt  a  loreign  corporation,   liable  to  taxa- 

examination.  tiou  uiidcr  the  provisious  of  sections  twenty-four,  thirty- 

liel;  283!  §  17;  seven,  thirty-eight,  forty,  forty-one,  forty-two,  forty-three, 

RS^'i3^^'/26.  forty-five,  fifty-two  and  fifty-three,  shall,  when  required, 

1886, 270.  submit   its   books   to   the   inspection  of  the  tax   commis- 

ili8'4i3'§23  sioner,  and  its  treasurer  and  directors  to  examination  on 

1898,'  417!  oath  relative  to  all  matters  affecting  the  determinations 

R.  L.  14,  §  63.  .*='   . 

1903, 437,  §81.  which  are  to  be  made  by  said  commissioner.  98  Mass.  22. 
FraSit^tax  Section  67.  The  tax  on  corporate  franchises  herein 
Trnpositlon^of  imposcd  upou  any  corporation  shall  not  affect  nor  prevent 
?Q^t^  ot o^ «•  1  o  the  imposition  and  collection  of  any  other  tax  now  author- 
P-  s.  13.  §  60.  ized,  or  that  may  hereaiter  be  authorized,  upon  any  es- 
R.  l!  14,  §  64.  pecial  privilege,  franchise  or  business  enjoyed  or  exercised 
by  such  corporation. 


APPEALS  AND  BOARD  OF  APPEAL. 

appltif  Section  68.     The  treasurer  and  receiver  general,  the 

bS?sTminfS  auditor  of  accounts  and  a  member  of  the  council  to  be 

me^nt?^^'  designated  by  the  governor,   shall  constitute   a  board   of 

1865, 283,  §  13.  appeal.     Any  party  aggrieved  by  a   decision  of  the  tax 

1880',  227!  §  2.  commissioner  made  under  the  provisions  of  section  twenty- 


219 

four  or  of  sections  twenty-six  to  sixty-five  inclusive,  and  ^^^- 13.  §§  6i, 
any  party  aggrieved  by  any  other  decision  of  the  tax  com-  i898, 4i7.^  ^^ 
missioner  upon  any  matter  arising  under  the  provisions  of  l^^^^^^^^g^- 
this  act  from  which  an  appeal  is  given,  may  apply  to 
the  board  of  appeal  within  ten  days  after  notice  of  his  de- 
cision.    Said  board  shall  hear  and  decide  the  subject  mat- 
ter of  such  appeal  and  give  notice  of  the  decision  to  the 
tax  commissioner  and  the  appellant ;  and  its  decision  shall 
be  final  and  conclusive,  although  payments  have  been  made 
as  required  by  the  decision  appealed  from.    Any  over-pay- 
ment of  tax  determined  by  decision  of  said  board  of  appeal 
shall  be  reimbursed  from  the  treasury  of  the  common- 
wealth. 

WARRANTS    FOR    COLLECTION    AND    APPLICATIONS    FOR 
RELIEF. 

Section  69.    When  a  tax  or  excise  of  any  kind  remains  collection  of 
due  to  or  is  claimed  by  the  commonwealth  from  a  corpora-  J^t.  ^  ^^^' 
tion,  company  or  association,  whether  existing  by  authority  §§Y,'i^' 
of  this  commonwealth  or  otherwise,  except  a  municipal  p^^g/ilf" 
corporation,  for  ten  days  after  notice  given  through  the  f|9|^'4^^- 
mail  by  the  treasurer  and  receiver  general  to  its  treasurer  iQooi  398. 
or  other  financial  asrent  that  such  tax  or  excise  is  due  and  r.l.  i4,  §66. 

.,       ,        ^  1  •  1  •  JJ-      1903, 437,  §  83. 

unpaid,  the  treasurer  and  receiver  general  may,  m  addi-  123  Mass.  497. 
tion  to  other  modes  of  relief,  issue  his  warrant,  directed  to 
the  sheriff  or  his  deputies  of  the  county  in  which  such  cor- 
poration, company  or  association  has  its  place  of  business, 
commanding  the  collection  of  such  tax  or  excise.  Such 
warrant  may  be  substantially  in  the  form  of  and  served 
in  the  same  manner  as  those  issued  by  the  assessors  of 
towns.  Such  warrant  shall  not  run  against  the  body  of 
any  person,  nor  shall  any  property  of  such  delinquent  cor- 
poration, company  or  association  be  exempt  from  seizure 
and  sale  thereon.  The  officer  having  such  warrant  ^hall 
collect  such  ta*x  or  excise,  and  interest  upon  the  same  at 
the  rate  of  twelve  per  cent  per  annum  from  the  time  when 
such  tax  or  excise  became  due,  and  may  collect  and  receive 
for  his  fees  the  sum  which  an  officer  would  be  entitled  by 
law  to  receive  upon  an  execution  for  a  like  amount.  He 
shall  also  collect  one  dollar  for  the  warrant,  which  shall 
be  paid  over  to  the  treasurer  and  receiver  general. 

[This  section  (originally  section  66  of  chapter  14  of  the  Re- 
vised Laws),  which  seems  to  embrace  eveiy  variety  of  corpo- 
ration except  a  municipal  corporation,  was  repealed  by  section 


220 

95  of  chapter  437  of  the  Acts  of  the  year  1903,  so  far  as  it  ap- 
plied to  corporations  subject  to  the  provisions  of  that  chapter, 
and  was  re-enacted  therein  as  section  83,  applicable,  however, 
only  to  domestic  business  corporations.  This  left  a  foreign  cor- 
l^oration  free  from  this  method  of  enforcing  the  collection  of 
taxes  or  excises  imposed  upon  it.  In  the  re-enacted  section  the 
warrant  issued  by  the  Treasurer  and  Receiver-General  was  to  be 
directed  to  the  sheriff  or  his  deputies  of  the  county  in  which  the 
principal  office  of  the  corporation  was  located.  No  reason  can  be 
assigned  that  foreign  corporations  should  not  also  fall  within  the 
provisions  of  this  section,  nor  can  it  be  readily  seen  why  the 
warrant  should  be  confined  to  the  county  in  which  the  principal 
office  of  the  corporation  was  located,  rather  than  to  the  county 
in  which  such  corporation  had  a  place  of  business,  as  provided 
for  in  the  repealed  section.  To  make  uniform,  therefore,  the 
provisions  of  law,  the  commission  has  adopted  the  wording  of  the 
original  section,  66.] 

may^b7deter*'^       Section  70.     Any  corporation  or  association  aggrieved 
mined  by         by  the  cxaction  of  said  tax  or  excise  or  of  any  portion 

supreme  judi-        /  .,..  in  t  i-i 

ciai  court  on      tliereoi  may,  witnm  six  months  alter  the  payment  ol  the 
1867. 52' §§  2, 4.  Same,  whether  such  payment  be  after  or  before  the  issue 
p.  s.'i3,  §§  64,  of  the  warrant  mentioned  in  the  preceding  section,  apply 
1898,417.         by  petition  to  the  supreme  judicial  court,  setting  forth  the 
1903;  437,^ §^84.  amouut  of  the  tax  or  excise  and  costs  thereon  so  paid,  the 
99^Mas3^i46      general  legal  grounds  and  the  specific  grounds  in  fact,  if 
123MMS.497.    any,  upon  which  it  is  claimed  such  tax  or  excise  should  not 
144  Mass!  66i     havc  becii  exacted.     Said  petition  shall  be  the  exclusive 
i49Mas8. 1.       remedy  and  shall  be  entered  and  heard  in  the  county  of 
157  Mass.  68.     g^ffQ^]-      j^  ^opy  of  the  Same  shall  be  served  upon  the 
treasurer  and  receiver  general  and  upon  the  attorney-gen- 
eral.    The  proceedings  upon  such  petition  shall  conform, 
as  nearly  as  may  be,  to  proceedings  in  equity,  and  an  abate- 
ment shall  be  made  of  only  such  portion  of  the  tax  or  ex- 
cise as  was  assessed  without  authority  of  law.     In  case 
said  tax  or  excise  has  heretofore  been  exacted  or  is  here- 
after exacted  in  consequence  of  any  law  or  statute  of  any 
other  state  of  the  United  States,  then  the  application  above 
provided  for  may  be  made  at  any  time  within  six  years 
after  the  exaction  of  said  tax  or  excise  or  any  portion 
thereof. 
Seilt  of ?ax  if         Section  71.     If  the  court,  upon  a  hearing  or  trial,  ad- 
ex?cted  j^^^g^s  that  Said  tax  or  excise,  and  the  costs  thereon,  have 

lili'  155^  ^'  ^^^^^  illegally  exacted,  a  copy  of  the  judgment  or  decree 
P-  s.'i3,  §  65.  shall  be  transmitted  by  the  clerk  of  the  court  to  the  auditor, 
r.^l!  i4j^§^68^  who  shall  thereupon  audit  and  certify  the  amount  adjudged 
to  have  been  illegally  exacted,  with  interest,  and  costs  to 


1903,  437,  §  85. 


221 

be  taxed  by  the  clerk  of  the  court  in  the  same  manner  as 
other  claims  against  the  commonwealth,  and  the  treasurer 
and  receiver  general  shall  pay  the  same,  without  any  fur- 
ther act  or  resolve  making  appropriation  therefor.  So 
much  thereof  as  has  been  paid  from  the  treasury  of  the 
commonwealth  to  any  city  or  town  may  be  deducted  from 
and  set  off  against  any  sum  afterwards  payable  to  such 
city  or  town. 

EXPRESS    COMPANIES. 

Section  72.     Every  person,  company,  partnership  or  Taxation  of 

.    .  -^     ^        ,       '.  ^       '^^    ^       .,  1-1     express  com- 

association  doing  an  express  business  on  any  railroad,  rail-  panies,  annual 
way,  steamboat  or  vessel  in  the  commonwealth,  shall  annu-  coi^sslo^r. 
ally,  between  the  first  and  tenth  days  of  May,  make  a  i907.586.§i. 
return  to  the  tax  commissioner,  under  oath,  stating  the 
name  of  the  person,  company,  partnership  or  association, 
and  setting  forth  as  of  the  first  day  of  May  in  the  year  in 
which  the  return  is  made :  — 

First.  The  total  amount  of  the  outstanding  capital  of 
the  person,  company,  partnership  or  association ;  the  classes 
of  stock,  if  any,  into  which  it  is  divided ;  the  par  value  and 
number  of  the  shares;  the  market  value  of  its  shares  and 
of  each  class  thereof,  if  there  are  two  or  more  classes. 

Second.  The  amount  and  par  and  market  value  of  all 
bonds  issued  by  such  person,  company,  partnership  or  asso- 
ciation, together  with  the  amount  of  the  unfunded  debt,  if 
any,  and  such  analysis  as  the  tax  commissioner  may  re- 
quire of  the  purposes  for  which  said  unfunded  debt  was 
incurred. 

Third.  A  statement  in  such  detail  as  the  tax  commis- 
sioner may  require  of  the  real  estate,  machinery,  merchan- 
dise and  other  property  belonging  to  the  person,  company, 
partnership  or  association,  together  with  the  location  and 
value  thereof  and  the  amount  of  taxes  paid  thereon  to  the 
various  cities  and  towns  in  the  commonwealth  for  the 
twelve  months  preceding  said  first  day  of  May.  Such  re- 
turn shall  be  filed  with  the  tax  commissioner,  and  shall  be 
open  only  to  the  inspection  of  the  tax  commissioner,  his 
clerks  and  assistants,  and  such  other  officers  of  the  com- 
monwealth as  may  have  occasion  to  inspect  it  for  the  pur- 
pose of  assessing  or  of  collecting  taxes. 

Section  73.     If  such  person,  company,  partnership  or  Notice'of  fail- 
association  fails  to  file  said  return  before  the  tenth  day  of  return. 


222 


Penalty. 
1907,  586.  §  2. 


Forfeitures, 
how  recovered. 
1907,  586,  §  3. 


Tax  commis- 
sioner to  esti- 
mate value  of 
capital. 
1907,  586,  §  4. 


Excise  tax,' 
how  levied. 
1907,  586,  §  5. 


May  of  each  year,  the  tax  commissioner  shall  give  notice 
by  mail,  postage  prepaid,  to  such  person,  company,  part- 
nership or  association  of  the  default.  If  the  return  is  not 
filed  within  thirty  days  after  such  notice  of  default  has 
been  given,  the  party  in  default  shall  forfeit  to  the  com- 
monwealth not  less  than  five  nor  more  than  ten  dollars  for 
each  day  for  fifteen  days  after  the  expiration  of  the  said 
thirty  days,  and  not  less  than  ten  nor  more  than  two  hun- 
dred dollars  for  each  day  thereafter  during  which  such 
default  continues. 

Section  74.  Penalties  or  forfeitures  incurred  by  fail- 
ure to  comply  with  the  provisions  of  the  preceding  sections 
may  be  recovered  in  an  action  brought  in  the  county  of 
Suffolk  in  the  name  of  the  commonwealth,  or  may  be  re- 
covered by  an  information  in  equity  in  the  name  of  the 
attorney-general,  at  the  relation  of  the  tax  commissioner, 
brought  in  the  supreme  judicial  court  in  the  county  of 
Suffolk.  Upon  such  information,  the  court  may  issue  an 
injunction  restraining  the  further  prosecution  of  the  busi- 
ness of  the  person,  company,  partnership  or  association 
named  therein  until  such  penalties  or  forfeitures,  with  in- 
terest and  costs,  have  been  paid,  and  until  the  return  re- 
quired by  section  seventy-two  has  been  filed. 

Section  T5.  The  tax  commissioner  shall  ascertain  from 
the  returns  or  otherwise  the  true  market  value  of  the  shares 
and  bonds  of  every  such  person,  company,  partnership  or 
association,  and  such  part  of  the  unfunded  debt  as  he  may 
determine  to  have  been  incurred  for  the  purposes  of  con- 
struction or  permanent  equipment  or  improvement,  and 
shall  estimate  therefrom  the  fair  cash  value  of  all  the  said 
shares,  bonds  and  unfunded  debt  as  herein  specified,  con- 
stituting its  capital  on  the  preceding  first  day  of  May. 

Section  Y6.  The  tax  commissioner  shall  thereupon  in 
each  year  levy  an  excise  tax  upon  every  such  person,  com- 
pany, partnership  or  association,  upon  the  fair  cash  value 
of  such  proportion  of  his  or  its  capital,  bonds  and  unfunded 
debt  determined  as  above,  after  deducting  therefrom  the 
value  of  the  real  estate,  machinery,  merchandise  and  other 
property  belonging  to  the  person,  company,  partnership, 
or  association,  within  the  commonwealth  and  subject  to 
taxation  in  the  various  cities  and  to^^Tis  thereof,  together 
with  the  value  of  securities  owned  by  him  or  it  and  not 


223 

liable  to  local  taxation,  as  the  gross  earnings  of  the  said 
person,  company,  partnership  or  association  within  the 
state,  bear  to.his  or  its  total  gross  earnings,  at  a  rate  equal 
to  the  average  of  the  annual  rates  for  the  three  years  pre- 
ceding that  in  which  the  assessment  is  made,  the  annual 
rate  to  be  determined  by  an  apportionment  of  the  whole 
amount  of  money  to  be  raised  by  taxation  upon  property 
in  the  commonwealth  during  the  same  year  as  returned 
by  the  assessors  of  the  several  cities  and  towns  under  the 
provisions  of  section  ninety-three  of  Part  I.,  after  deduct- 
ing therefrom  the  tax  assessed  upon  polls  for  the  preceding 
year,  as  certified  to  the  secretary  of  the  commonwealth, 
upon  the  aggregate  valuation  of  all  cities  and  towns  for 
the  preceding  year  as  returned  under  sections  fifty-nine 
and  sixty  of  Part  I. 

For  the  purposes  of  this  section  the  tax  commissioner 
may  take  the  value  at  which  the  real  estate,  machinery, 
merchandise  and  other  property  are  assessed  at  the  place 
where  they  are  located  as  the  true  value,  but  such  local 
assessment  shall  not  be  conclusive  of  the  true  value  thereof. 
The  tax  commissioner  may  require  the  person,  company, 
partnership  or  association  to  prosecute  an  appeal  from  the 
valuation  of  the  real  estate,  machinery,  merchandise  or 
other  property  by  the  assessors  of  the  city  or  town  either 
to  the  county  commissioners  or  to  the  superior  court, 
whose  decision  shall  be  conclusive  upon  the  question  of 
value.  Upon  such  appeal  the  tax  commissioner  may  be 
heard,  and  in  the  superior  court  costs  may  be  awarded  as 
justice  requires. 

Section  77.     The  tax  commissioner  shall  annually,  as  Notice  to  be 
soon  as  may  be  after  the  first  Monday  of  August,  give  fZluSt  of  tax. 
notice  to  every  such  person  and  to  the  treasurer  of  every  ^    7, 5  6,  §6. 
such  company,  partnership  or  association  which  is  liable 
to  taxation  under  the  provisions  of  the  preceding  section 
of  the  amount  thereof;  that  it  will  be  due  and  payable  to 
the  treasurer  and  receiver  general  within  thirty  days  after 
the  date  of  such  notice,  but  not  before  the  twentieth  day 
of  October;  and  that,  within  ten  days  after  the  date  of 
such  notice,  the  person,  company,  partnership  or  associa- 
tion may  apply  for  a  correction  of  said  tax  and  be  heard 
thereon  by  the  board  of  appeal  authorized  by  the  provi- 
sions of  section  sixty-eight  of  this  part. 


224 

ml^k??eturn  to  Section  78.  Assessors  shall  annually  on  or  before  the 
taxcommis-  first  Mondaj  in  August  return  to  the  tax  commissioner  a 
1907, 586.  §  6.  list  of  the  real  estate,  merchandise  and  other  property  of 
the  persons,  concerns  or  companies  doing  an  express  busi- 
ness as  aforesaid,  and  in  such  form  and  detail  as  the  tax 
commissioner  may  require,  with  the  value  thereof  on  the 
first  day  of  May  preceding  and  the  amount  at  which  the 
same  are  assessed  in  said  city  or  town  for  the  year  then 
current.  If  the  assessors  neglect  to  comply  with  the  re- 
quirements of  this  section,  each  assessor  so  neglecting  shall 
forfeit  one  hundred  dollars. 


225 


Part  IV. 

TAXATION  OF  LEGACIES  AND  SUCCESSIONS. 

Section  1.    All  property  within  the  jurisdiction  of  the  Taxation  of 

commonwealth,  corporeal  or  incorporeal,  and  any  interest  stfccesdoTs. 

therein,  whether  belonging  to  inhabitants  ©f  the  common-  i89ir425.°§i. 

wealth  or  not,  which  shall  pass  by  will,  or  by  the  laws  Hgeiios! 

regulating  intestate  succession,  or  by  deed,  grant,  or  gift,  ^l^  297.  ^ 

except  in  cases  of  a  bona  fide  purchase  for  full  considera-  J^'os.  470. 
.  7  1  -i  •  -i    1  1      lyuo,  4do. 

tion  m  money  or  money  s  worth,  made  or  intended  to  take  1907, 563,  §?i. 

effect  in  possession  or  enjoyment  after  the  death  of  the  lelMassiro.  * 
grantor,  to  any  person,  absolutely  or  in  trust,  except  to  or  595.  ^^* 
for  the  use  of  charitable,  educational  or  religious  socie-  J^sMasa.  206. 
ties  or  institutions,  the  property  of  which  is  by  law  ex-  266.^^'"  ^^^' 
empt  from  taxation,  or  for  or  upon  trust  for  any  charitable  J^|  JJ^|-  ^^ 
purposes,  or  to  or  for  the  use  of  a  city  or  town  for  pub-  Jyo^^^sfe 
lie  purposes,  or  to  or  for  the  use  of   (class  A)   the  hus-  180  Mass!  545! 
band,    wife,    lineal    ancestor,    lineal   descendant,    adopted  i78 u. s.41,  ' 
child,  the  lineal  descendant  of  any  adopted  child,  the  wife  [i  dp.  a.  g.  76. 
or  widow  of  a  son,  or  the  husband  of  a  daughter,  of  a  ^^'  ^^^'^ 
decedent,  or  to  or  for  the  use  of  (class  B)  the  brother, 
sister,  nephew  or  niece  of  a  decedent,  shall  be  subject  to  a 
tax  of  five  per  cent  of  its  value  for  the  use  of  the  common- 
wealth; and  such  property  which  shall  so  pass  to  or  for 
the  use  of  a  member  of  class  A  shall  be  subject  to  a  tax 
of  one  per  cent  of  its  value  for  the  use  of  the  common- 
wealth if  such  value  does  not  exceed  fifty  thousand  dol- 
lars, to  a  tax  of  one  and  one  half  per  cent  if  its  value 
exceeds  fifty  thousand  and  does  not  exceed  one  hundred 
thousand  dollars,  and  to  a  tax  of  two  per  cent  if  its  value 
exceeds   one  hundred   thousand   dollars;    and  such   prop- 
erty which  shall  so  pass  to  or  for  the  use  of  a  member  of 
class  B  shall  be  subject  to  a  tax  of  three  per  cent  of  its 
value  for  the  use  of  the  commonwealth  if  such  value  does 
not  exceed  twenty-five  thousand  dollars,  to  a  tax  of  four 
per  cent  if  its  value  exceeds  twenty-five  thousand  and  does 
not  exceed  one  hundred  thousand  dollars,  and  to  a  tax 


226 


Concerning 
certain  per- 
sonal estate 
passing  in 
succession. 
1907,  563.  §  2. 


Property  of  a 
resident  not 
subject  to 
taxation  in 
certain  cases. 
1907,  563,  §  3. 


of  five  per  cent  if  its  value  exceeds  one  hundred  thousand 
dollars ;  and  administrators,  executors  and  trustees,  and 
any  grantees  under  such  conveyance  made  during  the 
grantor's  life,  shall  be  liable  for  such  taxes,  with  interest, 
until  the  same  have  been  paid;  but  no  bequest,  devise  or 
distributive  share  of  an  estate  which  shall  so  pass  to  or 
for  the  use  of  a  husband,  wife,  father,  mother,  child  or 
adopted  child  of  the  deceased,  unless  its  value  exceeds  ten 
thousand  dollars,  and  no  other  bequest,  devise  or  distribu- 
tive share  of  an  estate  unless  its  value  exceeds  one  thou- 
sand dollars,  shall  be  subject  to  the  provisions  of  this  part; 
but  no  tax  shall-be  exacted  upon  property  so  passing  which 
shall  reduce  its  value  below  the  amount  of  the  above  ex- 
emptions. 

Sectioj^  2.  When  the  personal  estate  so  passing  from 
any  person  not  an  inhabitant  of  this  commonwealth  shall 
consist  in  whole  or  in  part  of  shares  in  any  railroad  or 
street  railway  company  or  telegraph  or  telephone  company 
incorporated  under  the  laws  of  this  commonwealth  and 
also  of  some  other  state  or  country,  so  much  only  of  each 
share  as  is  proportional  to  the  part  of  such  company's 
line  lying  within  this  commonwealth  shall  be  considered 
as  property  of  such  person  within  the  jurisdiction  of  the 
commonwealth  for  the  purposes  of  this  part. 

Section  3.  Property  of  a  resident  of  the  common- 
wealth which  is  not  therein  at  the  time  of  his  death  shall 
not  be  taxable  under  the  provisions  of  this  part  if  legally 
subject  in  another  state  or  country  to  a  tax  of  like  char- 
acter and  amount  to  that  hereby  imposed,  and  if  such  tax 
be  actually  paid  or  guaranteed  or  secured  in  accordance 
with  law  in  such  other  state  or  country ;  if  legally  subject 
in  another  state  or  country  to  a  tax  of  like  character  but 
of  less  amount  than  that  hereby  imposed  and  such  tax  be 
actually  paid  or  guaranteed  or  secured  as  aforesaid,  such 
property  shall  be  taxable  under  this  part  to  the  extent 
of  the  difference  between  the  tax  thus  actually  paid,  guar- 
anteed or  secured,  and  the  amount  for  which  such  prop- 
erty would  otherwise  be  liable  hereimder.  Property  of  a 
non-resident  decedent  which  is  within  the  jurisdiction  of 
the  commonwealth  at  the  time  of  his  death,  if  subject  to  a 
tax  of  like  character  with  that  imposed  by  this  part  by  the 
law  of  the  state  or  country  of  his  residence,  shall  be  sub- 
ject only  to  such  portion  of  the  tax  hereby  imposed  as 


227 

may  be  in  excess  of  such  tax  imposed  by  the  laws  of  such 
state  or  country:  provided,  that  a  like  exemption  is  made 
by  the  laws  of  such  other  state  or  country  in  favor  of  es- 
tates of  citizens  of  this  commonwealth,  but  no  such  exemp- 
tion shall  be  allowed  until  such  tax  provided  for  by  the 
law  of  such  other  state  or  country  shall  be  actually  paid, 
guaranteed,  or  secured  in  accordance  with  law. 

Section  4.     Except  as  hereinafter  provided,  taxes  im-  Taxes,  when 
posed  by  the  provisions  of  this  part  shall  be  payable  to  the  ilgf,  425, 
treasurer  and  receiver  general  by  the  executors,  adminis-  189^^430,  §  1. 
trators  or  trustees  at  the  expiration  of  two  years  after  the  fg  2',l^' 
date  of  their  giving  bond;  but  if  legacies  or  distributive  Jgol'l?!' 
shares  are  paid  Avithin  the  two  years,  the  taxes  thereon  ^^l^^f^^^2- 
shall  be  payable  at  the  same  time.     If  the  probate  court,  }62  Mass.  113. 
acting  under  the  provisions  of  section  thirteen  of  chapter  i89-Mass!  104! 
one  hundred  and  forty-one  of  the  Revised  Laws  has  ordered  76.]  ^' 
the  executor  or  administrator  to  retain  funds  to  satisfy 
a  claim  of  a  creditor,  the  payment  of  the  tax  may  be 
suspended  by  the  court  to  await  the  disposition  of  such 
claim.     In  all  cases  where  there  shall  be  a  grant,  devise, 
descent,  or  bequest  to  take  effect  in  possession  or  come 
into  actual  enjoyment  after  the  expiration  of  one  or  more 
life  estates  or  a  term  of  years,  the  taxes  thereon  shall  be 
payable   by   the   executors,    administrators   or   trustees   in 
office  when  such  right  of  possession  accrues,  or,  if  there 
is  no  such  executor,  administrator  or  trustee,  by  the  per- 
son or  persons  so  entitled  thereto,  at  the  expiration  of  one 
year  after  the  date  when  the  right  of  possession  accrues 
to  the  person  or  persons  so  entitled.     If  the  taxes  are  not 
paid  when   due,   interest  shall  be  charged   and  collected 
from  the  time  the  same  became  payable.     Property  of  ifenT^ltc^"' 
which  a.  decedent  died  seized  or  possessed,  subject  to  taxes 
as  aforesaid,  in  whatever  form  of  investment  it  may  hap- 
pen to  be,  and  all  property  acquired  in  substitution  there- 
for, shall  be  charged  with  a  lien  for  all  taxes  and  interest 
thereon  which  are  or  may  become  due  on  such  property; 
but  said  lien  shall  not  affect  any  personal  property  after 
the  same  has  been  sold  or  disposed  of  for  value  by  the  ex- 
ecutors, administrators  or  trustees.     The  lien  charged  by 
this  part  upon  any  real  estate  or  separate  parcel  thereof 
may  be  discharged  by  the  payment  of  all  taxes  due  and  to 
become  due  upon  said  real  estate  or  separate  parcel,  or  by 
an  order  or  decree  of  the  probate  court  discharging  said 


228 

lien  and  securing  the  payment  to  the  commonwealth  of  the 
tax  due  or  to  become  due  by  bond  or  deposit  as  herein- 
after provided,  or  by  transferring  such  lien  to  other  real 
estate  owned  by  the  owner  or  owners  of  said  real  estate  or 
separate  parcel  thereof. 
JJepo^i*^  i° 'ieu  Section  5.  In  every  case  where  there  shall  be  a  be- 
1907, 563,  §  5.  quest  or  grant  of  j^ersonal  estate  made  or  intended  to  take 
effect  in  possession  or  enjoyment  after  the  death  of  the 
grantor,  to  take  effect  in  possession  or  come  into  actual 
enjoyment  after  the  expiration  of  one  or  more  life  estates 
or  a  term  of  years,  whether  conditioned  upon  the  happen- 
ing of  a  contingency  or  dependent  upon  the  exercise  of  a 
discretion,  or  subject  to  a  power  of  apix)intment  or  other- 
wise, the  executor  or  administrator  or  grantee  may  de^wsit 
with  the  treasurer  and  receiver  general  a  sum  of  money 
sufficient  in  the  opinion  of  the  tax  commissioner  to  pay  all 
taxes  which  may  become  due  upon  such  bequest  or  grant, 
and  the  j^erson  or  persons  having  the  right  to  the  iise  or 
income  of  such  personal  estate  shall  be  entitled  to  receive 
from  the  commonwealth  interest  at  the  rate  of  two  and 
one  half  per  cent  per  annum  upon  such  deposit,  and  when 
said  tax  shall  become  due  the  treasurer  and  receiver  gen- 
eral shall  repay  to  the  jiersons  entitled  thereto  the  differ- 
ence between  the  tax  certified  and  the  amount  deposited; 
or  any  executor,  administrator,  trustee  or  grantee,  or  any 
person  interested  in  such  bequest  or  grant  may  give  bond 
to  a  judge  of  the  probate  court  having  jurisdiction  of  the 
estate  of  the  decedent,  in  such  amount  and  with  such  sure- 
ties as  said  court  may  approve,  with  the  condition  that  the 
obligor  shall  notify  the  tax  commissioner  when  said  tax 
becomes  due  and  shall  then  pay  the  same  to  the  treasurer 
and  receiver  general. 
Tax  to  be  Section  6.     Exccpt  as  hereinafter  provided,  said  tax 

assessed  upon        imi  i  -,  iicn 

actual  value      sliall  bc  asscsscd  upou  the  actual  value  of  the  property  at 

R.  l!  15.  §  16.'  the  time  of  the  death  of  the  decedent.    In  every  case  where 

1903!  276!         there  shall  be  a  devise,  descent,  bequest  or  grant  to  take 

1907!  563i  §  6.    effect  in  possession  or  enjoyment  after  the  expiration  of  one 

179  Mass.  546.    ^^  moYQ  life  cstatcs  or  a  term  of  years,  the  tax  shall  be 

assessed  on  the  actual  value  of  the  property  or  the'  interest 

of  the  beneficiary  therein  at  the  time  when  he  becomes 

entitled   to  the   same   in   possession   or   enjoyment.      The 

value  of  an  annuity  or  a  life  interest  in  any  such  property, 

or  any  interest  therein  less  than  an  absolute  interest,  shall 


229 

be  determined  by  the  "  Actuaries'  Combined  Experience 
Tables  "  at  four  per  cent  compound  interest. 

Sectiot^  ^.     Any  person  or  persons  entitled  to  a  future  Persons  en- 
interest  or  to  future  interests  in  any  property  may  pay  futSre  interest 
the  tax  on  account  of  the  same  at  any  time  before  such  SJ^oSl^count 
tax  would  be  due  in  accordance  with  the  provisions' here-  J^2r4T3"^' 
inbefore   contained,   and   in   such   cases   the  tax   shall  be  J904'f2i*^'^^' 
assessed  upon  the  actual  value  of  the  interest  at  the  time  i^o?;  563,  §  7. 
of  the  payment  of  the  tax,  and  such  value  shall  be  deter- 
mined by  the  tax  commissioner  as  hereinafter  provided. 
In  every  case  in  which  it  is  impossible  to  compute  the 
present  value  of  the  future  interest  the  tax  commissioner 
may,  with  the  approval  of  the  attorney-general,  effect  such 
settlement  of  the  tax  as  he  shall  deem  to  be  for  the  best 
interests  of  the  commonwealth,  and  payment  of  the  sum 
so  agreed  upon  shall  be  a  full  satisfaction  of  such  tax. 

Section  8.     If  a  testator  gives,  bequeaths  or  devises  to  Property  be- 
his  executors  or  trustees  any  property  otherwise  liable  to  exicutor  in  *° 
said  tax,  in  lieu  of  their  compensation,  the  value  thereof  pensation™' 
in  excess  of  reasonable  compensation  as  determined  by  the  r.^l!  i5^§  3^' 
probate  court  upon  the  application  of  any  interested  party  ^^^'^'  ^^^'  §  ^• 
or  of  the  tax  -commissioner,  shall  nevertheless  be  subject 
to  the  provisions  of  this  part. 

Section  9.     An  executor,  administrator  or  trustee  hold-  Executor 
ing  property  subject  to  said  tax  shall  deduct  the  tax  there-  erty^s^bject^ 
from  or  collect  it  from  the  legatee  or  j^erson  entitled  to  dedSct^hetax 
said  property;  and  he  shall  not  deliver  property  or  a  spe-  from^the*^* 
cific  legacy  subject  to  said  tax  until  he  has  collected  the  ^iig}^425  §  5. 
tax  thereon.     An  executor  or  administrator  shall  collect  J^Pi-  277.  ^ 
taxes  due  iipon  land  whjch  is  subject  to  tax  under  the  pro-  i^oy,  563,  §  9. 
visions  hereof  from  the  heirs  or  devisees  entitled  thereto,  30.] 
and  he  may  be  authorized  to  sell  said  land,  according  to 
the  provisions  of  section  twelve,  if  they  refuse  or  neglect 
to  pay  said  tax. 

Section  10.     If  a  legacy  subject  to  said  tax  is  charged  ^/tix^from 
upon  or  payable  out  of  real  estate,  the  heir  or  devisee,  ^g^g^f^^as  §  6 
before  paving  it,  shall  deduct  said  tax  therefrom  and  pay  R- L-  if- §6. 

,  T       .     .  IT  19U7,  5o3,  8  10. 

it  to  the  executor,  administrator  or  trustee,  and  the  tax 
shall  remain  a  lien  upon  said  real  estate  until  it  is  paid. 
Payment  thereof  may  be  enforced  by  the  executor,  admin- 
istrator or  trustee  in  the  same  manner  as  the  payment  of 
the  legacy  itself  could  be  enforced. 


230 


No  tax  charge- 
able upon 
legacy, 
in  certain 


1907,  563,  §  11. 


Sale  of  real 
estate  for  pay- 
ment of  tax. 
1891,  425,  §  8, 
R.  L.  15,  §  8. 
1907,  563,  §  12. 


Inventory. 
Penalty. 
1891,425,  §9. 
1895,  430,  §  2. 
R.  L.  15,  §  9. 
1907,  563,  §  13. 
[lOp.  A.G. 
30,  40,  52.] 
178  Mass.  95. 


Inventory, 
etc.,  to  be 
recorded. 
1891,  425,  §  10. 
R.  L.  15,  §  10. 
1907,  563,  §  14. 


In  cases  of 
assignment  or 
transfer  of 
stock  the  tax 
shall  be  paid  to 
the  treasurer 
and  receiver 
general,  etc. 
1900,  371,  §  1. 
R.  L.  15.  §  12. 
1907,  563,  §  15. 
173  Mass.  205. 


Section  11.  When  provision  is  made  by  any  will  or 
other  instrument  for  payment  of  the  legacy  or  succession 
tax  upon  any  gift  thereby  made  out  of  any  property  other 
than  that  so  given,  no  tax  shall  be  chargeable  upon  any 
money  to  be  applied  in  payment  of  such  tax. 

SEcTrioisr  12.  The  probate  court  may  authorize  execu- 
tors, administrators  and  trustees  to  sell  the  real  estate  of  a 
decedent  for  the  payment  of  said  tax  in  the  same  manner 
as  it  may  authorize  them  to  sell  real  estate  for  the  payment 
of  debts. 

Section  13.  An  inventory  and  appraisal  under  oath  of 
every  estate  shall  be  filed  in  the  probate  court  or  with  the 
tax  commissioner  by  the  executor,  administrator  or  trustee 
within  three  months  after  his  appointment.  If  he  neg- 
lects or  refuses  to  file  such  inventory  and  appraisal  he 
shall  be  liable  to  a  i)enalty  of  not  more  than  one  thousand 
dollars,  which  shall  be  recovered  by  the  tax  commissioner 
for  the  use  of  the  commonAvealth,  and  the  register  of  pro- 
bate shall  notify  the  tax  commissioner  within  thirty  days 
after  the  expiration  of  said  three  months  of  the  failure  of 
any  executor,  administrator  or  trustee  to  file  an  inventory 
and  appraisal  in  his  office. 

Section  14.  The  register  of  probate  shall  record  the  in- 
ventory and  appraisal  of  every  estate  which  is  filed  in  his 
office,  and  he  shall,  within  thirty  days  after  the  same  has 
been  filed,  send  by  mail  to  the  tax  commissioner  such  in- 
ventory and  appraisal  or  a  copy  thereof.  The  register 
shall  also,  within  the  same  period,  send  by  mail  to  the  tax 
commissioner  a  copy  of  the  will  of  the  decedent,  if  such 
has  been  allowed  by  the  probate  court.  The  register  shall 
also  furnish  such  copies  of  papers  in  his  office  as  the  tax 
commissioner  shall  require,  and  shall  furnish  information 
as  to  the  records  and  files  in  his  office  in  such  form  as  the 
tax  commissioner  may  require.  A  refusal  or  neglect  by 
the  register  so  to  send  such  inventory  and  appraisal  or 
copy  thereof,  or  to  furnish  such  copies  or  information, 
shall  be  a  breach  of  his  official  bond. 

Section  15.  If  a  foreign  executor,  administrator  or 
trustee  assigns  or  transfers  any  stock  in  any  national  bank 
located  in  this  commonwealth  or  in  any  corporation  or- 
ganized under  the  laws  of  this  commonwealth,  o^vned  by 
a  deceased  non-resident  at  the  date  of  his  death  and  liable 
to  a  tax  under  the  provisions  of  this  part,  the  tax  shall 
be  paid  to  the  treasurer  and  receiver  general  at  the  time 


231 

of- such  assignment  or  transfer;  and  if  it  is  not  paid  when 
due,  such  executor,  administrator  or  trustee  shall  be  per- 
sonally liable  therefor  until  it  is  paid.  A  bank  located 
in  this  commonwealth  or  a  corporation  organized  under 
the  laws  of  this  commonwealth  which  shall  record  a  trans- 
fer of  any  share  of  its  stock  made  by  a  foreign  executor, 
administrator  or  trustee,  or  issue  a  new  certificate  for  a 
share  of  its  stock  at  the  instance  of  a  foreign  executor, 
administrator  or  trustee,  before  all  taxes  imposed  thereon 
by  the  provisions  of  this  part  have  been  paid,  shall  be 
liable  for  such  tax  in  an  action  of  contract  brought  by  the 
treasurer  and  receiver  general. 

Section  16.     Securities  or  assets  belonging  to  the  estate  Notice  to 
of  a  deceased  non-resident  shall  not  be  delivered  or  trans-  Jecefvergen-^ 
ferred  to  a  foreign  executor,  administrator  or  legal  repre-  traisfer°of 
sentative  of  said  decedent,  unless  such  executor,  adminis-  i|oo"37i"  §  2 
trator  or  leffal  representative  has  been  licensed  to  receive  f^- l-  ^fkS;^^^. 

1  .^.  ^  T  ,  .    .  ^  .  1907,  663,  §  16. 

such  securities  or  assets  under  the  provisions  01  section 
three  of  chapter  one  hundred  and  forty-eight  of  the  Re- 
vised Laws,  without  serving  notice  upon  the  tax  commis- 
sioner of  the  time  and  place  of  such  intended  delivery  or 
transfer,  seven  days  at  least  before  the  time  of  such  deliv- 
ery or  transfer,  but  the  notice  required  by  section  three  of 
said  chapter  one  hundred  and  forty-eight  to  be  given  to 
the  treasurer  and  receiver  general  shall  be  given  to  the 
tax  commissioner  in  regard  to  all  property  subject  to  the 
provisions  of  this  part,  instead  of  being  given  to  the  treas- 
urer and  receiver  general.  The  tax  commissioner,  either 
]3ersonally  or  by  representative,  may  examine  such  securi- 
ties or  assets  at  the  time  of  such  delivery  or  transfer. 
Failure  to  serve  such  notice  or  to  allow  such  examination 
shall  render  the  person  or  corporation  making  the  delivery 
or  transfer  liable,  in  an  action  of  contract  brought  by  the 
treasurer  and  receiver  general,  to  the  payment  of  the  tax 
due  upon  said  securities  or  assets. 

Section  17.     The  tax  commissioner  shall  be  made  a  Thetaxcom- 
party  to  all  petitions  by  foreign  executors,  administrators  S!^^|JtyTo*pe-^ 
or  trustees  brought  under  the  provisions  of  section  three  fSSgn'^x- 
of  chapter  one  hundred   and  forty-eight  of  the  Revised  igSoJIyi.i's. 
Laws,  and  no  decree  shall  be  made  upon  any  such  petition  Jgoy*  563^^17 
unless  it  appears  that  notice  of  such   petition  has   been 
served   on   the   tax  commissioner   fourteen   days   at   least 
before  the  return  of  such  i>etition. 


232 

Taxjnaybe  Section  18.     If  a  pcrsoii  who  has  paid  such  tax  after- 

i8?f^4'?TTi2  ^^^^  refunds  a  portion  of  the  property  on  which  it  was 
1892',  379.  paid,  or  if  it  is  judicially  determined  that  the  whole  or 
1907,'  563,  §  18.  any  part  of  such  tax  ought  not  to  have  been  paid,  such 
tax,  or  the  due  proportion  thereof,  shall  be  repaid  to  him 
by  the  executor,  administrator  or  trustee. 
AppraS.'  Section  19.     The  value  of  the  property  upon  which 

R^L  i5^§^6^'  ^^^  ^^^  ^^  computed  shall  be  determined  by  the  tax  com- 
1905,  367.  missioner  and  notified  by  him  to  the  person  or  persons 
179  Mass.' 546.'  by  wliom  the  tax  is  payable,  and  such  determination  shall 
be  final  unless  the  value  so  determined  shall  be  reduced  by 
proceedings  as  herein  provided.  At  any  time  within  three 
months  after  such  determination  the  probate  court  shall, 
upon  the  application  of  any  party  interested  in  the  suc- 
cession, or  of  the  executor,  administrator  or  trustee,  ap- 
point one  disinterested  appraiser  or  three  disinterested 
appraisers,  who,  first  being  sworn,  shall  appraise  such 
property  at  its  actual  market  value,  as  of  the  day  of  the 
death  of  the  decedent  and  shall  make  return  thereof  to 
said  court.  Such  return,  when  accepted  by  said  court, 
shall  be  final:  provided^  that  any  party  aggrieved  by  such 
appraisal  shall  have  an  appeal  upon  matters  of  law.  One 
half  of  the  fees  of  said  appraisers,  as  determined  by  the 
judge  of  said  court,  shall  be  paid  by  the  treasurer  and 
receiver  general,  and  one  half  of  said  fees  shall  be  paid 
by  the  other  party  or  parties  to  said  proceeding. 
Soner^s'hX"  Section  20.    The  tax  commissioner  shall  determine  the 

of  u?dS^t°o""*  amount  of  tax  due  and  payable  upon  any  estate  or  upon 
thetreaaurer      aiiv  part  thcrcof,  and  shall  certifv  the  amount  so  due  and 

and  receiver  i  i  i  i  "  •  i  i  i 

general.  payable  to  the  treasurer  and  receiver  general  and  to  the 

person  or  persons  by  whom  the  tax  is  payable;  but  in  the 
determination  of  the  amount  of  any  tax  said  tax  commis- 
sioner shall  not  be  required  to  consider  any  payments  on 
account  of  debts  or  expenses  of  administration  which  have 
not  been  allowed  by  the  probate  court  having  jurisdiction 
of  said  estate.  Payment  of  the  amount  so  certified  shall 
be  a  discharge  of  the  tax.  An  executor,  administrator, 
trustee  or  grantee  who  is  aggrieved  by  any  determination 
of  the  tax  commissioner  may,  within  one  year  after  the 
payment  of  any  tax  to  the  treasurer  and  receiver  general, 
apply  by  a  petition  in  equity  to  the  probate  court  having 
jurisdiction  of  the  estate  of  the  decedent  for  the  abate- 
ment of  said  tax  or  any  part  thereof,   and  if  the  court 


233 

adjudges  that  said  tax  or  any  part  thereof  was  wrongly 
exacted  it  shall  order  an  abatement  of  such  portion  of 
said  jtax  as  was  assessed  without  authority  of  law.  Upon 
a  final  decision  ordering  an  abatement  of  any  portion  of 
said  tax,  the  treasurer  and  receiver  general  shall  pay  the 
amount  adjudged  to  have  been  illegally  exacted,  with  in- 
terest, without  any  further  act  or  resolve  making  appro- 
priation therefor. 

Section  21.     The  probate  court  having  jurisdiction  of  '^(Jjfj.Ho^h^lr 
the  settlement  of  the  estate  of  the  decedent  shall,  subject  and  determine 
to  appeal  as  in  other  cases,  hear  and  determine  all  ques-  etc. 

X-  1    X-  ^  -J    X  1    xT_       J.  1  •  1891, 425,  §  14. 

tions  relative  to  said  tax,  and  the  treasurer  and  receiver  r.  l.  i5,  §  17. 

general   shall   represent  the   commonwealth  in   any   such  igo?;  les,"  §  21. 

proceedings.     If  the  court  shall  find  that  any  tax  remains  ^5^^-  '^•^• 

due,  it  shall  order  the  executor,  administrator  or  trustee  to  \^  j^^^-  ^|g 

pav  the  same,  with  interest  and  costs;  and  execution  shall  JI^?J^^-f^^ 

1  '       .  '  ^11  ,189  Mass.  104. 

be  awarded  against  the  goods  and  estate  01  the  deceased 
in  the  hands  of  the  executor,  administrator  or  trustee,  or, 
if  it  appears  that  there  are  no  such  goods  or  estate  in  his 
hands,  against  the  goods  and  estate  of  the  executor,  admin- 
istrator or  trustee,  as  if  for  his  own  debt ;  but  the  adminis- 
trators, executors,  trustees,  and  grantees  hereinbefore  men- 
tioned shall  be  personally  liable  only  for  such  taxes  as 
shall  be  payable  while  they  continue  in  the  said  offices  or 
have  title  as  such  grantees  respectively. 

Section  22.     If,  upon  the  decease  of  a  person  leaving  Application  by 
an  estate  liable  to  a  tax  under  the  provisions  of  this  part,  skfne?fb?ad- 
a  will  disposing  of  such  estate  is  not  offered  for  probate,  i^gj^^lS^'l^is. 
or   an   application   for   administration   made   within   four  Jgo 7 '  563^/22 
months  after   such  decease,   the   probate  court,   upon   ap- 
plication by  the  tax  commissioner,  shall  appoint  an  admin- 
istrator, if  it  then  appears  that  there  is  no  will  in  existence. 

Section  23.     ISTo  final  account  of  an  executor,  admin-  Payment  pf 
istrator  or  trustee  shall  be  allowed  by  the  probate  court  aiiowln^e  of  *° 
unless  such  account  shows,   and  the  judge  of  said  court  i89^"425,  §  le. 
finds,  that  all  taxes  imposed  by  the  provisions  of  this  part  f^-  ^53^^23 
u}x>n   any  property  or  interest  therein  belonging  to  the  }89Esi04' 
estate  to  be  settled  by  said  account  and  already  payable, 
have  been  paid,  and  that  all  taxes  which  may  become  due 
on  said  estate  have  been  paid  or  settled  as  hereinbefore 
provided,   or   that   the   payment   thereof  to   the   common- 
wealth is  secured  by  bond  or  deposit  or  by  lien  on  real 
estate.     The  certificate  of  the  tax  commissioner  and  the 


234 


The  treasurer 
and  receiver 
general  to 
commence 
proceedings 
for  the  recov- 
ery of  unpaid 
taxes,  etc. 
1891,  425,  §  18. 
R.  L.  15,  §  20. 
1907,  563,  §  24. 
179  Mass.  546. 
189  Mass.  104. 
[1  Op.  A.  G. 
268.] 


receipt  of  the  treasurer  and  receiver  general  for  the 
amount  of  the  tax  therein  certified  shall  he  conclusive  as  to 
the  payment  of  the  tax,  to  the  extent  of  said  certification. 
Sectioi^  24.  The  treasurer  and  receiver  general  shall 
commence  proceedings  for  the  recovery  of  any  of  said 
taxes  within  six  months  after  the  same  become  payable; 
and  also  whenever  the  judge  of  a  probate  court  certifies 
to  him  that  the  final  account  of  an  executor,  administrator 
or  trustee  has  been  filed  in  such  court,  and  that  the  settle- 
ment of  the  estate  is  delayed  because  of  the  non-payment 
of  said  tax.  The  probate  court  shall  so  certify  upon  the 
application  of  any  heir,  legatee  or  other  person  interested 
therein,  and  may  extend  the  time  of  payment  of  said  tax 
whenever  the  circumstances  of  the  case  require. 


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